[quote=flu]Lol phaster. I hate bonds… I don’t know why you think I like bonds. The only reason why I have a little tiny holding of bonds is because it’s slightly better than a 1%CD. How’s you’re 1%CD doing for ya the past 8-10 years?
Thanks for the very entertaining cartoons. Glad you took time out of your day to find them so I wouldn’t have to. Cute!
FLU Out… (mic drop).[/quote]
sigh,… Déjà vu
(NOTE analysis and conclusions based on supporting “proverbial” 10,000 words or so of “contextual” DATA!)
[quote=”phaster”]
June 21, 2016 – 7:23am
…I’d think it prudent to investigate “investment yield alternatives” along with a hedge strategy against the risk of systemic economic failure (i.e. TSHTF) before “investing” in CA muni bonds,…
[/quote]
[quote=”phaster”]
July 10, 2016 – 7:30pm
…so while we wait for the other shoe to drop, I’ve been partial to preferred stock(s) (as a viable alternative to bank CDs that yield ~1%) because shares generally have a dividend >1% (which must be paid out before dividends to common shareholders) AND as an asset class it seems to have an acceptable risk/reward ratio…
[/quote]
[quote=”phaster”]
July 26, 2016 – 8:00pm
thanks for the concern/warning, but see no need to enter a pissing contest comparing personal financial statements AND past “PERSONAL” PORTFOLIO PERFORMANCE as a way to perhaps score some meaningless ideological points
[quote=money.usnews.com] How mutual fund firms use past performance to distract investors.
Mutual fund companies tout past performance for one reason: It works, even though the relationship between past and future returns is highly problematic. One 2002 National Bureau of Economic Reserach study, “Mutual fund flows and Performance in Irrational Markets,” found that the “relative performance of mutual fund managers appears to be largely unpredictable using past relative performance.”
while i’m at it want to disclose the fact that I’ve never been all in or all out of the market (YET AGAIN), also thought I’d mention I’ve achieved and maintained a better than average “financial health” which I can easily prove to any CPA or mortgage broker if needed
therefore the statement you so graciously shared is not applicable BUT would say looking at it another way there is an unwritten kernel of truth to it,… perhaps even a corollary,… because I’ve managed to achieve and maintain a better than average “financial health” using a disciplined value investment “money management” approach (i.e. benjamin graham school of investing)
speaking of “money management” here’s one bit of recent financial news that seems relevant (AND not in a good way)
[quote=sacbee.com]
CalPERS earned less than 1% in fiscal year
CalPERS reported a 0.61 percent gain in investments in its latest fiscal year, the second straight year of subpar results for the big California pension fund.
…The latest results come on top of a gain of just 2.4 percent in the previous fiscal year. Both results are well below CalPERS’ official annual target of 7.5 percent.
this data point along w/ other observations of market players…
[quote=livinincali][quote=henrysd]I have owned Vanguard long term CA muni bond fund since 2009. The fund is so called long term, but it is actually in high spectrum of intermediate term bond fund as the average duration is only 6.4 years. There were many good times to buy it like any time from 2009-2012. The best time was when “star analyst” Whitney called for massive default in muni bond which never happened. True star manager like Bill Gross added massive position in muni bond after Whitney made the call which causeed big selloff in muni bond. My entry point was about 4% YTM and with the yield down to 1.8% now, there is significant risk of losing value when interest goes up. I personally feel it is too late to jump into the boat. Be careful when tempted to the 1.8% yield using bank saving rate as reference.
I am still holding the position, and if Fed raise fed fund rate to 1% (likely in 3 baby steps), I’ll dump the fund and change position to CA muni money fund.[/quote]
The math says that eventually some muni bonds will be defaulted on. The problem is when and where. That’s what Whitney got wrong, the timing. It’s obvious that at some point Chicago is going to default on their muni bonds. They are currently paying the bond holders and defaulting on their contractors. CA sort of did the same thing with IOUs in the depths of the recession. You do have somewhat of a cushion because cities seems to value paying the bond holders before some of their other bills.[/quote]
[quote=mercatus.org]
A new study for the Mercatus Center at George Mason University ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, such as unfunded pensions and healthcare benefits.
#44 California
#45 Hawaii
#46 Kentucky
#47 Illinois
#48 New Jersey
#49 Massachusetts
#50 Connecticut
#51 Puerto Rico
sure looks like an un-appreciated trend that indicates its only a matter of when TSHTF WRT the muni “bond” funds sector,… so I’d suggest caution as per specific OP query (i.e. What does everyone think of municipal bond funds?… Any thoughts would be appreciated.)
PS WRT “actual insight”
its been said… This above all: to thine own self be true, so don’t be mad at me (the messenger) for pointing out various problems w/ muni bonds, its the first thing investors should be doing (i.e. due diligence)
as for an “actual insight” get the feeling that you might have CA bond fund misgivings or perhaps even “buyer’s remorse”
but what do I know
[quote=flu]
June 18, 2016 – 12:24pm.
I have the vanguard intermediate term ca fund for a few years. Its alright. I personally wouldnt do the long term one. But what do I know.
July 15, 2016 – 7:46am.
what ends up happening is one end up spending a lot more time trying to rationalize the decision
[/quote][/quote]
PS just like when $hit for brains individuals, more often than not WAY WAY WAY OVER ESTIMATE THEIR OWN ABILITIES, have no grasp of reality or an understanding of the bigger picture and lack the moral strength to admit mistakes,… IMHO letting money define your self-worth (money ≠ wealth) is a big unappreciated psychological behavior problem that has cumulative adverse effect on the economy and environment!!!
[quote=”psychologytoday.com”] Do You Have a Money Disorder?
Just about everyone has a complicated relationship with money,… Financial strain has been found to reduce relationship satisfaction, worsen depression, and lead to emotional problems, health difficulties, and poor work performance. With record high debt and record low savings rates in the years leading up to the economic crisis, the average American seemed to suffer from a money disorder.
Money disorders are persistent patterns of self-destructive and self-limiting financial behaviors. They result from distorted beliefs about money we develop from our financial flashpoint experiences. Financial flashpoints are painful, distressing, and/or dramatic life events associated with money that are so emotionally powerful, they leave an imprint that lasts into adulthood.
Whether it’s a childhood of poverty or want, a message about money subconsciously internalized from a parent, a nest egg lost to an economic downturn later in life, or someone rushing in at the last moment to save the economic day, everyone has experienced a financial flashpoint in their lives. Recognizing them is the first step in stripping them of their power, and overcoming our money disorders.
[quote=”psychologytoday.com”] The Madness of Materialism
…savage materialism was typical of European immigrants’ attitude to the ‘New World’ of America. They saw it as a treasure-house of resources to ransack, and saw the native population as an inconvenient obstacle to be eradicated.
…As Buddhism teaches, desires are inexhaustible. The satisfaction of one desire just creates new desires, like a cell multiplying.
The only real way of alleviating this psychological discord is not by trying to escape it, but by trying to heal it
