March 2015 PDF

Greece Is the Word

Investors around the globe were seemingly on tenterhooks in late February, waiting to see how the battle between the EU and Greece would pan out. In the end, Greece reached a deal to kick the can down the road, and markets roared ahead, with the Dow, the S&P 500 and myriad other equity indexes hitting record highs in February. But while U.S. stocks have outperformed foreign markets in four of the past five calendar years, Research Director Jeff DeMaso and I wouldn't advise putting all of your nest egg in the domestic basket, for reasons we explain in this month's issue.

Instead, stick with the managers we've invested with through thick and thin via the funds in our Model Portfolios. If you're new to the newsletter or just need a refresher, we've got the rationale for each pick in this month's Funds Focus, plus an exclusive interview with Charles Plowden of Baillie Gifford, who shares his thoughts on the foreign vs. domestic question as well. Sadly, you can only get a diluted piece of their expertise, thanks to the multimanagement structure of Global Equity, International Growth and U.S. Growth. Of course, Vanguard always tries to claim multimanagement is a good thing, but as I'll show you in the newsletter, their latest attempt to do so initially fudged the numbers—something Jeff and I strive never to do in our monthly reports of just how our Model Portfolios have done, good or bad. We think you'll find the long-term track record overwhelmingly good. Read More »

February 26, 2015

Greece Lightning

Any way you slice it, Greece's newly elected government danced and danced and made it look like dropping out of the EU was going to be a 'strategic career move.' But in the end, well, they've basically got nothing more than they started with, no matter how they spin it. Greece and the EU have only agreed to a four-month extension, so there will be more chapters to this drama. Looking ahead, perhaps the most relevant line from Grease was delivered by Scorpions member Leo: 'The rules are…there ain't no rules.' Read More »

February 9, 2015

Here Comes Ultra-Short-Term Bond

Vanguard is launching Ultra-Short-Term Bond tonight. This money-market alternative for investors who can withstand a bit of volatility in their share price should be well-received by those who have substantial sums tied up in money funds paying 0.01%. Vanguard's gone back and forth on whether the fund is or isn't a money-fund alternative, but as they've written, it should appeal to investors who'd like to "earn a better return than the near-zero yield of a money market fund without losing the ability to access your money." Read More »

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Re: Selected Value Fund

mf102 (03-02-2015) wrote: Mr Wait: That post is only one page back... Thought the question sounded familiar. Lot of repeat questions popping up these days that have already been answered just a few posts away. nero Read More »


Re: March Issue

righton (03-02-2015) wrote: Many thanks nero. Inc & Gro Read More »


Re: Selected Value Fund

butwait (03-02-2015) wrote: Here's a link to a recent Selected Value post raising questions, may want to start there: ButWait Read More »

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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 February 2015
Growth 5.0% 3.7%
Conservative Growth 4.6% 3.4%
Income 3.2% 2.7%
Growth Index 5.1% 3.7%
The average
Vanguard investor
3.4% 2.6%
Past Performance »