Catching Up On Reader Questions

One reader asked what I thought if DFA Funds. The results have been fantastic over the years but they can only be bought through advisors. Personally I have very little interest in OEF however. One reader asked for feedback from readers about tolerance for volatility. FWIW clients range from not being able to own equities to never opening their statements, point being there is no abnormal in this discussion. A reader named Milo asked for my opinion about Nick Russo. I don’t actually know much about him. I believe he has some strong opinions about gold or oil or both. As a general rule I don’t worry too much about truly severe outcomes. The probability of something severe is quite low. A reader asked for my thoughts on Latin America and specifically a fund that invests in the region from T Rowe Price. As I don’t really use OEFs I spend almost no time studying them. My thoughts on the region have been the same since before I started this site which is that the region benefits from what I think is a clear and obvious increase in demand for resources and I think exposure is very important for a diversified portfolio. Tom from Indy left some great comments and a hearty welcome back, thanks Tom. What’s the deal with Floyd? A typical house in downtown Reykjavic. Out in the countryside of Iceland More pictures to...

Back

After 30 hours of planes, trains and automobiles we made it back about an hour ago. I have to catch up on a zillion things, both personal and work related. I’ll resume normal blogging...

Snaefullsbaer

That is the name of the peninsula where we are headed today before the US market opens. I do not know if the place we are staying has internet access or not, I may have to try to call Schwab collect to stay in touch. World markets look weak, my guess as a reaction to the give back in the states yesterday. I found this article out there about Deutsche Bank teaming up with PowerShares to enhance the commodity product and to work on currency ETFs, probably the one that will go long the high yielders and short the low yielders that made news a few months ago. I will try to check in...

OOF!!

So much for the lift holding for today. I got a friendly comment from long time reader HLP, BTW he has left some great comments and info in the past, telling me to work less, hehe. While my wife agrees, I cannot begin to convey how much I love what I do. I had a market related question about how much cash I have. It varies for all the usual disclaimers but maybe close to 20% for most folks, some less some more. Having too much and being upset about missing a rally is tough but to the extent it is just an emotion it need to be and can be managed. As a matter of philosophy 70% cash or similar is a tad high if that is where you are. One other asked about my opinion on iShares Switzerland as a bomb shelter play. Generally sure, I own Novartis for most clients for that very reason but the Swiss franc currency ETF may prove better. In the last few weeks, though, not so much as the dollar rallied at what I perceive to be the height of the recent middle east flare...

Keeps On A Lifting

At least that is how the market is starting out and the world markets seem likely to support the lift in the US today. If the market were to set a bear trap this is what it would look like. I have no idea if my bearish view will turn out to be correct or if it is next stop 1350 (for the SPX). Fortunately I do not have to be right about this. This is something I have been writing about for ages, not making such an extreme bet that being wrong costs you too much. Plenty of people sound compelling without being right very often. The jury is still out on my ability to call big turns in the market and the like, and I know this. As the market goes up far more often than not, there is value in staying in the game even if, like me right now, you have a little more cash than normal. This entire concept is very important to how think this job should be done. A lot of things look to be working right now including foreign and gold as the dollar is getting smacked. Am I seeing correctly that the ten year is now yielding 5.01%, oops! Did the Fed do a surprise lowering while I have been away (humor attempt)? More later, thanks for sticking with me while I am...