August 2015 PDF

Warming Trend?

Was global warming to blame for the GDP revision showing the U.S. economy growing, rather than shrinking, during the first quarter? I doubt it, but according to the Bureau of Economic Analysis, the economy continued its slow-growth, not no-growth momentum in the year's first three months. And in Washington, D.C., where hot air is a fact of life, Janet Yellen's Fed is warming to an interest-rate hike after all, despite the fact that inflation hasn't met its targets, whereas job creation and employment have.

I In this month's newsletter, I'll explain why I don't believe rising interest rates are bad for investors. In fact, I look forward to them, and I think you should, too, as I explain in the second part of my multi-month series on bonds, where I discuss some of the risks associated with investing in bonds and bond funds. Also, I have a few words to say in response to Vanguard founder Jack Bogle's comments on disclosing executive compensation in the August 2015 issue of Money Magazine. Finally, I'll explain why investors shouldn't shy away from investing in foreign stocks, despite the messy headlines outside of U.S. borders. If you didn't take my advice in the March 19 Hotline to add to your international holdings, now is as good a time as any. I'll tell you which fund to use. Read More »

July 30, 2015

Maybe It Wasn't So Cold After All

Surprise! The U.S. economy actually grew a fraction in the first quarter of 2015, rather than contracting. This, according to new and revised figures from the Bureau of Economic Analysis, which says that we actually saw 0.6% annualized growth in Q1 rather than the prior data showing a 0.2% decline. Unfortunately, what the BEA gives, it also takes away: The initial estimate on Q2 growth was just 2.3%, which disappointed the consensus that was expecting at least 2.5% or so. Have no fear, though. I looked back at the years since the Great Recession and, based on revised numbers, the final number has come in higher than the initial estimate in six of the last seven Q2 GDP reports. That's a far sight better than any other quarter. Read More »

June 17, 2015

The Individual's Money Fund With the $5 Million Minimum

The press completely missed one of the craziest parts of Vanguard's announcement yesterday that it’s renaming and realigning its money market funds to keep their net asset values at a fixed $1.00 per share by avoiding the “institutional” label. Read More »

Most Recent Forum Threads
View More »

Re: Can One Fund Do It All?

dag112 (08-04-2015) wrote: I like this idea. Other than the income what is the downside of using this as only fund? What reasons to use multiple funds instead ? Read More »


Re: Trend Tracking Indexes - Update

butwait (08-04-2015) wrote: Day/Date Domestic TTI International TTI Friday 07/24/2015... Read More »


Re: WOT: The U.S. Is No Longer a Democracy

mf102 (08-04-2015) wrote: ^^^^^^^^^^^^ that (above) might be one of the most accurate posts ever on this forum... nero Read More »

Access the Independent Guide to the Vanguard Funds Now
Read Online

"America's leading expert on investing in Vanguard funds"

Daniel P. Wiener is editor of The Independent Adviser for Vanguard Investors, a monthly newsletter that keeps abreast of recent developments at Vanguard, and the annual FFSA Independent Guide to the Vanguard Funds. Through his newsletter and guide book, Dan helps tens of thousands of Vanguard investors choose wisely among more than 100 Vanguard mutual funds. The Adviser is a five-time winner of the Newsletter Publishers Foundation's Editorial Excellence Award. View More »

Vanguard Funds Correlation
What's This?
Model Portfolio Performance
Models July 2015
Growth 1.2% 5.1%
Conservative Growth 1.0% 4.3%
Income 1.6% 3.1%
Growth Index 1.3% 4.5%
The average
Vanguard investor
0.9% 2.5%
Past Performance »