January 11, 2018

Inflation Down, Markets Up

While stocks continue to hit highs, it's the bond market that's had tongues wagging lately, as worries about China cutting back its purchases of Treasurys as well as worries about inflation jumping higher have hit long-bond prices, pushing the yield on the 10-year Treasury to 2.60% during yesterday's trading. And of course, higher bond yields could eventually make bonds look more attractive than stocks to some investors, and that's a worry for stock investors. Well, this morning's report on producer prices suggests that inflation may have cooled a bit in December (we'll get a better read when the headline consumer price index is released tomorrow). Treasurys rallied while their yields fell. So much for the inflation bugbear. Read More »

January 4, 2018

Dow Thresholds: Easier and Easier to Cross

The headlines were breathless when the Dow crossed 24000 for the first time late last year, and now, as the index heads for a close above 25000, I can only imagine the prose that will mark this day. While crossing the 25000 mark for the Dow over just 35 days ties this move with two others for speed, when it comes to investment gain, which is what really counts, this one wasn't anything special. Read More »

January 2018 PDF

Broken Records

Above all else, 2017 was a year when records were broken and then broken again. We don't know if we've ever seen a year like this one, with stocks hitting so many highs, again and again, while the economy motored on, inflation remained quiescent, and unemployment dropped beyond what's generally considered a full job market. The S&P gained ground each and every month of the year—a first in its more than 40-year history. And that's despite a year of headlines—from North Korea to the Trump investigations to natural disasters—all but guaranteed to turn your hair white. (Turn to our Year in Review feature for a refresher.) If that's not proof that trying to predict where the markets will be next month (never mind next year) is a fool's game, we don't know what is. Read More »

Most Recent Forum Threads
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Re: The 5 Percent Rule of Investment Allocation

butwait (01-16-2018) wrote: From Kent Thune's article: "As you can see, the sector funds (utilities, healthcare, and real estate) received a 5 percent allocation. This is because these particular mutual funds concentrate on one particular type of stock, which can create higher levels of risk. Higher risk mutual funds should generally receive lower... Read More »


Re: Trend Tracking Indexes - Updates

butwait (01-16-2018) wrote: Domestic TTI International TTI Monday 01/08/2018 ... Read More »


Re: General Advice

butwait (01-16-2018) wrote: Blue Some Thoughts... Current Portfolio 72.9% Target Retirement Income Fund (VTINX) 20.3% Balanced Index Fund (VBIAX) 6.8% International Growth Fund (VWIGX) Instant x-ray of current portfolio: 40.07% stocks (25.42% US & 14.65% non-US stocks); 56.68% bonds; 3.25% cash/other Vanguard Target Retirement Income Fund (VTINX) holds: 30.38% stocks; 69.62% bonds, and 0% cash/other. VTINX is... Read More »

Guidebook Cover 2018
Order your copy of the 2018 Independent Guide to the Vanguard Funds today

"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 December 2017
Growth 0.8% 22.4%
Conservative Growth 0.8% 19.5%
Income 0.9% 17.2%
Growth Index 0.8% 20.5%
The average
Vanguard investor
1.0% 15.7%
Past Performance »