Comments on: In search of an everything bagel http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Rudy Axson http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-55689 Mon, 20 Oct 2014 06:48:55 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-55689 continuously i used to read smaller posts which also clear their motive, and that is also happening with this paragraph which I am reading at this time.

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By: traduceri daneza http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-55054 Tue, 14 Oct 2014 09:59:07 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-55054 Greetings from Colorado! I’m bored at work so I decided to check out your site on my iphone during lunch break. I love the info you present here and can’t wait to take a look when I get home. I’m shocked at how quick your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyhow, excellent site!

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By: Edyth Laurenzano http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-54398 Thu, 09 Oct 2014 12:49:57 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-54398 whoah this blog is excellent i love studying your articles. Stay up the great paintings! You know, many people are hunting around for this info, you can aid them greatly.

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By: TFF http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14829 Fri, 14 May 2010 19:29:16 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14829 Felix, are you INVESTING or TRADING?

If you are INVESTING, then find mature well-managed companies with a transparent and predictable revenue stream that will throw off cash for dividends, share repurchases, and strategic acquisitions for many years to come. Nor are these companies strictly tied to the stagnant GDP of the developed nations, as they are already expanding successfully into the emerging markets.

I doubt you’ll get blockbuster returns with this strategy, but you ought to be able to stay 4% to 6% ahead of inflation over the long run. And you can sleep tight knowing that these business continue to grow in both good times and bad.

Or you can gamble on the short-term mood swings of the market. If you have the stomach for that…

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By: FosterBoondog http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14818 Fri, 14 May 2010 16:09:28 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14818 You can’t really invest in “the global market”. A huge amount of capital is tied up in productive assets whose value flows to local inhabitants, and you simply can’t buy a piece of it. (e.g., highways, public transit systems, museums, public buildings, etc.) Also, tax regimes and wage demands mean that a lot of economic output won’t flow to owners of capital in any case.

But in terms of tradeable assets, this paper (http://papers.ssrn.com/sol3/papers.cfm? abstract_id=1368689) claims you can do a pretty reasonable job with just a small number of positions – roughly 1/4 each in equities (MSCI All Countries) and real estate, 1/3 in bonds (gov’t, IG and HY) plus a bit of commodities (which you can now get with an ETF). The only tough one for investing is real estate. You could do a REIT index, but that only covers the US.

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By: SteveHamlin http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14817 Fri, 14 May 2010 15:23:03 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14817 It is called Global Asset Allocation, or All Assets. (see below)

Or, one could invest in a target retirement fund, say 2020-2030 – there are good ones that have global bonds, equity, commodities, metals, alternatives, absolute strategies.

While you are talking about taking actual exposure to all of these global financial alternatives, you don’t really need actual exposure to create a decent tracking portfolio against your idea. While you asked for single product ideas, a basket of three or four diversified global ETFs could get you a high beta vs. the Salmon World GDP index. You could also set up an account at a large mutual fund/ETF house and do a simple allocation among their numerous options, managing your own fund-of-funds (that defeats your ‘one product’ idea, although allocating to 5 funds within one account is not that much harder than one fund).

That said:

World Allocation fund list: http://biz.yahoo.com/p/tops/ih.html

PIMCO Global Multi-Asset Fund (PGMAX), managed by Mohamed El-Erian
– http://www.allianzinvestors.com/mutualFu nds/profile/PMGM/portfolio_A.jsp

PIMCO All Asset Fund (PASAX), managed by Robert Arnott
– http://www.allianzinvestors.com/mutualFu nds/profile/PMALA/portfolio_A.jsp

Barron’s: http://online.barrons.com/article/SB1254 52421827460577.html

CBS: http://moneywatch.bnet.com/investing/art icle/asset-allocation-funds-6-picks/3600 02/

Permanent Portfolio: http://finance.yahoo.com/q/hl?s=PRPFX+Ho ldings

I agree with dWj – you don’t need to conserve global purchasing power unless you’re going to be significantly purchasing around the globe. Be more worried about preserving purchasing power in the markets you frequent – that’s a proper hedge. Going long the Thai Bhat when you don’t intend to retire there is speculating.

For a fully diversified portfolio using ETFs, I’ve been summarizing different popular investment managers approaches here: https://spreadsheets.google.com/ccc?key= 0AitqrKgg5ChPcGZGZ2lDOVZrM0RHU1EzcVlWQ0U wSGc&hl=en#gid=10

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By: DanHess http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14811 Fri, 14 May 2010 05:41:04 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14811 As Karl Marx understood well, wealth flows to those who own the productive assets. Meanwhile, promises such as bonds and more fanciful instruments can become very flaky if the issuer comes under duress. Nearly every entity, when its existence is threatened (and most entities are threatened severely from time to time), will choose preservation ahead of honoring promises.

Corporations, which can be owned via stocks, are claims on real tangible assets of productive value as well as all manner of knowledge and intellectual property. They are also actively run by people who can maneuver around all manner of taxes and regulations in the preservation of capital, while creatively seeking new opportunity at all times. Importantly, corporations can efficiently move capital across borders when it is threatened and keep capital as a diaspora for many years until it can safely return home.

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By: Sundog http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14810 Fri, 14 May 2010 05:36:46 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14810 What to do with the money, as opposed to hiding precious metals under the bed? Taleb is thinking productive farmland. I’ll see him that and raise him the Amish. Invest in Amish farmers in the US, in Mexico, in Brazil, wherever they are to be found — and fund their expansion.

Shy away from investing where returns are predicated on cheap energy, and moral, labor, or regulatory arbitrage.

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By: SteveHamlin http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14809 Fri, 14 May 2010 04:49:30 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14809 It’s called Global Tactical Asset Allocation, or All Assets. (see below)

Or pick a target-date retirement fund, for say, 2020-2030 – you can find some good ones with global equities, global bonds, commodities, metals, alternatives, absolute strategies.

I know you asked for a single vehicle with actual exposure to all of those non-traditional financial investments, but you really don’t need the actual exposure, you just need a close enough tracking to be comfortable, and one that doesn’t dislocate when stress is high. You can get a very good beta to your Global GDP index with three or four diverse global ETFs (low fees), and a large account at a big mutual fund house will let you make your own fund of funds, from a very broad selection. Not as easy as one, but if you can buy one fund online, you can buy 3-5.

That said, a World Allocation List: http://biz.yahoo.com/p/tops/ih.html

PIMCO Global Multi-Asset Fund (PGMAX), managed by Mohamed El-Erian
– http://www.allianzinvestors.com/mutualFu nds/profile/PMGM/portfolio_A.jsp

PIMCO All Asset Fund (PASAX), managed by Rob Arnott
– http://www.allianzinvestors.com/mutualFu nds/profile/PMALA/portfolio_A.jsp

Barron’s: http://online.barrons.com/article/SB1254 52421827460577.html

CBS: http://moneywatch.bnet.com/investing/art icle/asset-allocation-funds-6-picks/3600 02/

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By: dWj http://blogs.reuters.com/felix-salmon/2010/05/13/in-search-of-an-everything-bagel/comment-page-1/#comment-14808 Fri, 14 May 2010 04:10:50 +0000 http://blogs.reuters.com/felix-salmon/?p=3843#comment-14808 Felix: If anything, you want to be a little bit overweight US securities (as opposed to the rest of the world), assuming you’re planning to live here the rest of your life. Your future liabilities will correlate more highly with dollar assets than with others.

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