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Posts by MSchapiro

I love that Drake's tie. 
They have a lot of debt and leveraged companies are not in favor.  Especially with government contracts from Iraq and Afghanistan roll off combined with a declining media market.  Declining markets and very high leverage wipe out shareholder equity. 
There is no more math to it. You have always taken a loss on that tranche. Quote:Originally Posted by lawyerdad If you believe strongly in the long-term (whatever that may mean to you) value of the security and see interim drops as opportunities to pick up additional shares at nice discount that you believe makes the new purchase an attractive investment, that's rational. To a certain extent, that's at least one of the rationales behind just making steady contributions to...
No it is a very real loss. One can continue to invest to make up for it, but it is still a loss.  The problem is if you are holding the securities when the market begins to price in higher rates. You will take a capital loss. 
You still take the loss. I'm thinking on a portfolio level. None of the tools available to me likely have a negative correlation with rising rates.  mREITs do in a way because they are hedged and steeper rates bring a greater yield, but there is no way to know what the yield curve steepness will look like in the future. Also I can only buy a REIT fund that has eREITs and mREITs. 
Yes you do.  Can't put it in cash though, so not much I can do there. I believe the current government spending patterns will lead to a tax increase bar anything unforseen happening. I'd rather lock in the tax rate now.  I still don't fully understand the mechanism by which mid term bond funds operate. I presume they are selling bonds as they get closure to maturity to maintain their average maturity so there is a risk of capital loss. Need to go through a fixed income...
My Roth 401k is actually 90% bonds at the moment.    I want to put as much as I can in there without risk of loss. Will re-allocate when valuations become more attractive. 
80/20 Stock bonds is not close to "all weather", you'll have a lot of vol there. 
That's a very conservative account, how old are you? Given current market conditions I might be tempted in your situation to have more intermediate term bonds and less long term bonds. Full disclosure I've never looked into how long term bond funds work. Do they roll and sell the bonds when they are closer to maturity or sell them (i.e. a risk of capital loss? Or simply a risk of overpaying)? I'm not sure.  As for commodities you can do that in your Ameritrade account...
GM could have failed without further reaching consequences, the government just did the cost benefit and decided it wasn't worth it. Not sure I totally agree with them, even though I now own GM shares. Not really relevant to the 2008 bank bailouts IMO. 
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