irondoor91

Comment Stream » AGG

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • Defining a Set of Core Asset Classes
    This all sounds very good. Modern portfolio theory, diversification, splitting of the hairs, etc. There's just one problem as I see it. It's backward looking over the past 70 years and does not take into account what will happen to any portfolio or asset class in a deflationary environment. All of these asset classes mentioned depend on one thing--and ever increasing amount of bank lending and expanding credit.

    You show no allocation to cash, which is the best performing asset class over the past 8 years. Why not? All of the asset classes mentioned may have increased slightly or not at all in dollar terms, but in terms of real money (gold) they are losers by a large margin. That's why a million bucks just doesn't buy you much any more.

    These asset classes may protect an investor during inflation. But when the great unwinding finally hits, there is no place to hide no matter what your "mix". It then has just been another case of intellectual analysis.
    Aug 13 10:12 am |Rating: 0 0 |Link to Comment |View article
  • Cutting Rates Further Will Only Lead to Disaster
    Re: Helping adjustable-rate mortgages with a Fed cut. Sorry, but most of those adjustable rate loans are linked to LIBOR. I understand that at the time some of these mortgages were originated (especially the option-arms) the borrower could choose between a LIBOR-based adjustment or some other basis, such as a 3 mo T-Bill or CD. Since LIBOR has historically been the lower nominal rate, borrowers naturally chose it. Now it is working to their detriment.
    Oct 30 11:01 am |Rating: 0 0 |Link to Comment |View article
  • Irrational Exuberance Got Buried Yesterday: Now What?
    There is always that "lull me to sleep with soothing words" comfort in holding assets that are not liquid and only occasionally appraised by some "professional&quo... How is it that your illiquid real estate is more valuable than the real estate held in a REIT? Are your tenants paying higher rent than the tenants in REIT real estate? Are your mangers charging lower management fees? Are your lenders giving you better terms?

    Perhaps it's just that certain knowledge that, over time, all real estate goes up. Until it doesn't.
    Aug 13 10:57 am |Rating: 0 0 |Link to Comment |View article
  • Irrational Exuberance Got Buried Yesterday: Now What?
    You know, I was just having the same thought about the liquidity issue in the past couple of days. How many times did David Faber (who is acutally the most astute and connected person on CNBC) say that the "world is awash in liquidity". Why, it was sloshing around in every bilge and sesspool from Red China to Goldman to The City to Dubai.

    If we suddenly now have a credit crunch, where did all this liquidity go? If the central banks are "injecting liquidity", where did they get it? Did they just happen to have some of this "old" liquidity sitting aside?

    Like most, I am truly baffled. But hey, no worries, as the young folks say.
    Aug 13 10:51 am |Rating: 0 0 |Link to Comment |View article

irondoor91's Comments Stream Stats

  • 130 Comments, 25 , 1
  • Total Comment Stream rating - = 24