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  #1191  
Old 02-16-2018, 02:03 PM
lulzEMH lulzEMH is offline
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Anybody concerned that the negative correlation of stocks and bonds reverses and forces deleveraging among investors (like Risk Parity funds). Basically if inflation forces continue raising bond rates, which drives down stock valuations.


Or that the blowup of VIX sellers via the implosion of the XIV fund was the start of the unwind of the short volatility trade? I.E. there was a feedback loop as each new group joined the short vol trade, with retail investors (willing to misprice XIV by 300% the final day) being the dumbest last group to pile on. Now they peel off 1 by 1.
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  #1192  
Old 02-16-2018, 03:01 PM
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Pseudolus Pseudolus is offline
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Quote:
Originally Posted by ronaldy27 View Post
Some of you are old enough to be my dad.
Teach me how to invest properly senpais!
Quote:
Originally Posted by Klaymen View Post
If you are young, the best advice (at any age) is to dump as much money as you dare into your 401k. And don't panic when it tumbles because it's going to.
Yep.

Save a lot. Invest broad, boring, dumb, and cheap. (I.e., mostly index-y stuff.) Leave it alone. Don't even look at it.

Don't blow money on stupid crap you don't need.


Actuarywise, never underestimate the option to abandon.
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  #1193  
Old 02-19-2018, 11:21 AM
MathGeek92 MathGeek92 is offline
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Quote:
Originally Posted by ronaldy27 View Post
Some of you are old enough to be my dad.
Teach me how to invest properly senpais!

Also, how to be a successful actuary....and in life in general.
Thanks.
I for one am guaranteed to be old enough to be your dad.

for anything really, educate yourself and learn the business. All aspects of it not just "actuary stuff". You will become invaluable when you can spot issues in others (non-actuarial work).

As for investing.. stay diversified, don't shoot for the moon except for money you are OK losing 100% on. Learn about markets in general and how to spot trends to take calculated bets.. and don't panic with your LONG TERM mmoney. it will go up and down a lot over your long life. Save as much pre-tax as possible

and then enjoy life. Spend the rest on whatever you want. A hot sports car, exciting trips to foreign lands (or domestic for that matter). Many many things change over your working life. Don't assume "nothing will happen to me".. you may save like crazy and never get to spend it on what you were intending on. I've seen it countless times.

Make a difference.

Best wishes.
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  #1194  
Old 02-20-2018, 12:57 PM
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djdadude djdadude is offline
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Originally Posted by djdadude View Post
I dunno, I guess I'm dumb because I threw a bunch of money into bond funds this week. As I mentioned I got way overweighted in domestic equities with the market runup, so I took this opportunity to get things almost fixed- the domestic portion came down because of losses and I brought the bond allocation up almost to around where I want to be. Still a little overweighted in equities.

If we are indeed supposed to have a long term plan and stick to it and not time things, then I guess what I did was rational. But maybe I could have timed things better.
I've read a bit more about this, including this article: https://www.schwab.com/resource-cent...est-rates-rise.

As an investor in bond funds rather than individual bonds, increasing my allocation now wasn't too bad of a move. Here is the key chart:



Bond funds are more flexible- as interest rates rise, they'll reallocate to the higher yielding bonds. So they may take a short term price hit, but if your time horizon is long (like mine is), they'll benefit over time from the higher coupons.
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  #1195  
Old 02-20-2018, 04:22 PM
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thanks dude, nice read.
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  #1196  
Old Yesterday, 01:55 PM
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Quote:
Originally Posted by ronaldy27 View Post
Some of you are old enough to be my dad.
Teach me how to invest properly senpais!

Also, how to be a successful actuary....and in life in general.
Thanks.
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  #1197  
Old Yesterday, 02:21 PM
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redprinceton redprinceton is online now
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Quote:
Originally Posted by ronaldy27 View Post
Some of you are old enough to be my dad.
Teach me how to invest properly senpais!
Thanks.
I'm not old enough to be your dad, but basically, always be buying low cost mutual funds regardless of what the market does. That's pretty much the strategy for retirement at least. Provided that you're long-term bullish on the American companies, there's no reason not to do this unless you think you can beat the market on your own, which almost no one can.
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  #1198  
Old Yesterday, 03:19 PM
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Quote:
Originally Posted by ronaldy27 View Post
Some of you are old enough to be my dad.
Teach me how to invest properly senpais!

Also, how to be a successful actuary....and in life in general.
Thanks.
Quote:
Originally Posted by redprinceton View Post
I'm not old enough to be your dad, but basically, always be buying low cost mutual funds regardless of what the market does. That's pretty much the strategy for retirement at least. Provided that you're long-term bullish on the American companies, there's no reason not to do this unless you think you can beat the market on your own, which almost no one can.
https://www.usatoday.com/story/money...ers/350466002/
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  #1199  
Old Yesterday, 03:40 PM
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Great ending to a story I've been tracking for years. Love that the new foster transition program will be called Protégé House. And it seems like the Protégé guys took it in stride.
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  #1200  
Old Yesterday, 03:53 PM
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ronaldy27 ronaldy27 is offline
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Quote:
Originally Posted by MathGeek92 View Post
I for one am guaranteed to be old enough to be your dad.

for anything really, educate yourself and learn the business. All aspects of it not just "actuary stuff". You will become invaluable when you can spot issues in others (non-actuarial work).

As for investing.. stay diversified, don't shoot for the moon except for money you are OK losing 100% on. Learn about markets in general and how to spot trends to take calculated bets.. and don't panic with your LONG TERM mmoney. it will go up and down a lot over your long life. Save as much pre-tax as possible

and then enjoy life. Spend the rest on whatever you want. A hot sports car, exciting trips to foreign lands (or domestic for that matter). Many many things change over your working life. Don't assume "nothing will happen to me".. you may save like crazy and never get to spend it on what you were intending on. I've seen it countless times.

Make a difference.

Best wishes.
Thank you sir.
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