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Post by yogibearbull on Nov 19, 2023 17:09:24 GMT
I haven't had a MM fund for years, My current one, FGTXX, has a 2.3% cap gain. Is it unusual to have a cap gain in a MM fund? If so, would you sell it to collect the gain and then re-purchase it? M-mkt funds do trade securities and deal with repos. So, they may have small capital gains (less common) or losses (more typical). Much of the m-mkt regulation deals with handling of situations when the internal NAV is less than $1 but the public NAV is still $1. But if there are gains, they have to distributed just like for other mutual funds. These G/L can be seen in fund reports. Anyway, FGTXX has a huge AUM. Its report includes other m-mkt funds in the series. In this 104-page semiannual report (Download), I do see some distributed capital gains of around 0.0005/share (those under 0.0005/share aren't shown); with $1 NAV, that would be around 0.05% only. Do you have a link for 2.3% CG? www.gsam.com/content/gsam/us/en/liquidity-solutions/fund-center/fund-finder/gs-financial-square-government-fund.html#activeTab=literature
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Post by mnfish on Nov 20, 2023 11:12:45 GMT
I haven't had a MM fund for years, My current one, FGTXX, has a 2.3% cap gain. Is it unusual to have a cap gain in a MM fund? If so, would you sell it to collect the gain and then re-purchase it? M-mkt funds do trade securities and deal with repos. So, they may have small capital gains (less common) or losses (more typical). Much of the m-mkt regulation deals with handling of situations when the internal NAV is less than $1 but the public NAV is still $1. But if there are gains, they have to distributed just like for other mutual funds. These G/L can be seen in fund reports. Anyway, FGTXX has a huge AUM. Its report includes other m-mkt funds in the series. In this 104-page semiannual report (Download), I do see some distributed capital gains of around 0.0005/share (those under 0.0005/share aren't shown); with $1 NAV, that would be around 0.05% only. Do you have a link for 2.3% CG? www.gsam.com/content/gsam/us/en/liquidity-solutions/fund-center/fund-finder/gs-financial-square-government-fund.html#activeTab=literatureI hold it at Wells Advisors and now I see that every month when it pays interest and repurchases shares they call it a Client Investment Gain. The share purchase price is always $1.00. So, the total Client Investment Gain is basically the sum of total interest paid. Weird?
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Post by steadyeddy on Nov 21, 2023 2:49:30 GMT
M-mkt funds do trade securities and deal with repos. So, they may have small capital gains (less common) or losses (more typical). Much of the m-mkt regulation deals with handling of situations when the internal NAV is less than $1 but the public NAV is still $1. But if there are gains, they have to distributed just like for other mutual funds. These G/L can be seen in fund reports. Anyway, FGTXX has a huge AUM. Its report includes other m-mkt funds in the series. In this 104-page semiannual report (Download), I do see some distributed capital gains of around 0.0005/share (those under 0.0005/share aren't shown); with $1 NAV, that would be around 0.05% only. Do you have a link for 2.3% CG? www.gsam.com/content/gsam/us/en/liquidity-solutions/fund-center/fund-finder/gs-financial-square-government-fund.html#activeTab=literatureI hold it at Wells Advisors and now I see that every month when it pays interest and repurchases shares they call it a Client Investment Gain. The share purchase price is always $1.00. So, the total Client Investment Gain is basically the sum of total interest paid. Weird? mnfish, so you made a cumulative 2.3% client investment gain. That makes sense. As you pointed out, it is not capital gains.
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Post by junkster on Nov 22, 2023 0:12:03 GMT
I am going to edit my original post and take the “me” out of it since I never posted any entry point on my positions. Posting after the fact serves no purpose and something I am loathe to do.
Some huge moves in bonds the past few weeks. It is all about long duration thanks to the decline in longer dated Treasuries. On the positive side, the velocity exceeds the aborted ramp up in January. Sort of a lock out move freezing those out looking for an entry. Gains in the teens for the long government category. Gains exceeding 8% in the long term bond category and 5% to 6%+ in munis, emerging markets debt, and mbs. (Gains are for one month and greater since beginning of month)
Bank loans have flatlined and going forward may see a dip in anticipation of lower Fed funds. Pimco has been selling bank loans. Junk corporates have lagged albeit still seeing nice gains. Seasonality is normally strong for junk corporates in December and January. A recession or weakening economy would be beneficial for all the current long duration leaders in Bondville. Not so much so for junk corporates.
Many traders/investors edged back into bonds based on the explosive trading action in and around the latest Fed meeting on November 1. Munis look particularly appealing based on seasonality as well as fundamental factors. There was only one default in 2022 and cash coffers at many municipalities have been building. Even Puerto Rico is looking good again. It was comforting to see a couple times the past month where the 10 year Treasury got hit but having no effect on munis. Positive divergence so to speak. While this could well prove to be yet another fake out rally in long duration bonds, the mindset for some traders is to play every explosive rally as THE rally. I recall where after the Meredith Whitney muni bear market in 2013 how the rally in early January 2014 came amid much skepticism and never looked back. Always have an exit point but if the bottom is in, play this for the longer term. Isn’t the longer term where the money is best made?
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Post by Chahta on Nov 22, 2023 15:24:36 GMT
junkster, thanks for the perspective on bond funds.
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Post by oldskeet on Nov 22, 2023 16:34:28 GMT
Hi junkster, Thanks for posting your perspectives on bonds. I am in the process of trimming my cash position and looking to add to my fixed income sleeve plus some other areas as well. Much appreciated. Old_Skeet
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Post by FD1000 on Nov 22, 2023 20:11:08 GMT
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Post by FD1000 on Nov 23, 2023 21:33:41 GMT
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Post by teapot on Nov 24, 2023 7:14:34 GMT
FD1000 , Thanks for the clarification on your trading criteria. How much time do you spend each week to monitor market to identify bond OEF trading opportunity? How do you deal with mutual fund minimum hold time? Read ( fd1000.freeforums.net/thread/25/putting-all) Hi, FD Thanks for the answer. But I don't think I get a full picture as it is not as simple as you said on your web site: "Just several hours. This means, every 4-6 months, you spend 3-5 hours to find 5 funds and make the switch until the next time." A few posts above on Nov 13th, you also said: "I play markets as they presented themselves. I can trade something for hours-days, weeks, or months." So a few hours scan every 4-6 months is only part of total time required. You probably didn't change your holding strictly on 4-6 months boundary. When you trade for hours, you most likely keep watching for hours. I am wondering on average, how many hours per week/month do you have to spend for your investment? I want to see if the time required fit for me or not. Thanks.
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Post by FD1000 on Nov 24, 2023 14:44:44 GMT
Hi, FD Thanks for the answer. But I don't think I get a full picture as it is not as simple as you said on your web site: "Just several hours. This means, every 4-6 months, you spend 3-5 hours to find 5 funds and make the switch until the next time." A few posts above on Nov 13th, you also said: "I play markets as they presented themselves. I can trade something for hours-days, weeks, or months." So a few hours scan every 4-6 months is only part of total time required. You probably didn't change your holding strictly on 4-6 months boundary. When you trade for hours, you most likely keep watching for hours. I am wondering on average, how many hours per week/month do you have to spend for your investment? I want to see if the time required fit for me or not. Thanks. I'm talking about my original system that I practiced prior to being a trader who avoids big losses. This means that you look for the best risk/reward fund in the last 3/6-36 months using a fund screener, such as this( fundresearch.fidelity.com/fund-screener/) every 4-6 months and buy 5 funds. No quick trades, no in/out, no timing, just buy and hold and be in the market 100%. You have to use your judgement which fund to buy/exchange. Nothing is ever 100% clear. You get better with practice. During 2000-10 I held SGIIX,FAIRX,OAKBX 20% in each for about 7-8 years. A quicker way is to use funds picks from Fidelity. They do something similar to my idea. I like to see all the options. Suppose I want to select only stock/allocation funds using my style. Then click on the risk tab, sort by best Sharpe, then go back to overview. I see too many funds. Let's use absolute returns YTD > 10%. Look at your list, which fund looks great for YTD + 3 year? I found the following: See my search( fundresearch.fidelity.com/fund-screener/results/table/overview/sharpeRatio3Yr/desc/1?assetClass=BAL%2CDSTK&category=AL%2CCA%2CCV%2CIH%2CLB%2CLG%2CLV%2CMA%2CMB%2CMG%2CMV%2CRI%2CSB%2CSG%2CSV%2CTA%2CTD%2CTE%2CTG%2CTH%2CTI%2CTJ%2CTK%2CTL%2CTN%2CTU%2CTV%2CXM%2CXQ%2CXY&order=assetClass%2Ccategory%2CreturnsYTD&returnsYTD=10%2CGT) See the attached list below. GOODX looks great. Fidelity funds are always first. Repeat every 4-6 months. The above took me 5 minutes. I take a nap for 4 months. This makes sure you are in leading risk/reward funds. There is no way, you will be stuck in lagging funds for years. BTW, if the SP500 is doing great, you may want to use it at a high %. Research show that good funds continue to be good or above average in the next several months because the style of the managers work well with markets in that period. Attachments:
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Post by whisper on Nov 24, 2023 17:06:11 GMT
FD1000 - Seems that you are only telling half the story. Here you said you sold on Thursday, 11/9/2023, which implies that you missed the ensuing rally. If you are going to brag that you bought early, please also say that you sold too early.
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Post by habsui on Nov 24, 2023 22:15:31 GMT
No need to get defensive - we all believe in your secret method that you are selling 23 times every day.
Keep it up...
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Post by FD1000 on Nov 25, 2023 21:43:21 GMT
I just can't grasp why. The psychology is beyond me. The obsession with constant posting which is all bragging is a symptom of a serious problem, IMO.I sincerely hope he gets some help. I hate to see a fellow human struggling and embarrassing themselves in such a way. Well, I will make one and only post about the above, IMO you crossed the lineMost of my opinions on funds, markets, what to do, whatever...are on threads that I created like this one. For months now I have not reported specific trades or performance, just generics. Please read this thread from the beginning and tell be where are all these bragging posts. It is a year long, just read page one and let me know. The "bragging" have a long history (since 2008-9) claiming that timing + good risk/reward would never work. I let my posts tell my story. I also put several posters on ignore. This way I don't read or answer them. Several on this forum and others post their great trades, portfolio performance, what they believe in, some have done great ST+LT trades and much better than me, others mentioned their portfolio size and some have done it for years several times per year....but, I'm the only one that brags when I post about generics. XOXO.
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Post by Norbert on Nov 26, 2023 6:41:36 GMT
FD1000 - Seems that you are only telling half the story. Here you said you sold on Thursday, 11/9/2023, which implies that you missed the ensuing rally. If you are going to brag that you bought early, please also say that you sold too early. I wouldn't hold my breath.
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Post by chang on Nov 26, 2023 9:48:27 GMT
Unfortunately we're back to where we were last year when Sara left. Trust me: not what I want to spend time on a bright Sunday morning in London.
First, FD makes a very (probably the most) important point: he started this thread (and another long-running thread, "2023 makes more sense" on the Market Insights board). Thread starters don't "own" their thread, but they should have wider latitude to post, guide the conversation, deter hijacking, etc.
But the fact is that I have been inundated with complaints about FD repeatedly posting the same things (his 'system', his perfect timing, 'don't listen to the experts', etc.) and it may be deterring new or current members from participating.
I hold free speech dear, but this is a community, and I want the forum to be a desirable place to ask questions, share experiences, get advice, and generally spend time reading, lurking, or posting. FD is interfering with this objective. He doesn't ask questions, but mainly recirculates the same comments in a fashion that obviously provokes and irritates.
There is an "Ignore" ("Block") feature here, but people don't seem to use it as much as they should. Regardless, the issue goes somewhat beyond that.
I happen to think FD is firmly on the right side of the seed corn debate, although if any debate has been debated to death and doesn't need to be debated any further, it's that one. On the other hand, I think his 'system' is a simple "hot hands" strategy using bond OEFs, which I can't make any sense of. As to his past success, we only have his word for it, but personally I don't believe anyone with a 'system' that always wins and never loses, especially if 'all the experts' are wrong.
Bottom line: I'm looking forward to a peaceful holiday season without responding to flagged posts daily, so I'll ask FD (again) to take a break for the rest of the year. He's got his own web page, so free speech still reigns.
(Edit: FD asked me to lock this thread and delete the last few off-topic messages, which I have done. I've left a few to demonstrate the feedback I've been receiving.)
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