Academic Identity
I am assistant professor of Sociology at Barnard College. My book (and my dissertation research) is a comparative study of technology and futures trading, an ethnography of open outcry and electronic traders. My current research is on how art specialists price cultural commodities, particularly how categories and commensuration work in the secondary/resale fine arts market. I teach courses in economic sociology, organizations, and gender.
Professional Identity
I occasionally consult, focusing on organizational change, the future of technology and financial markets, and environmental markets. I do strategic assessments of markets, technology and organizational design, with qualitative and quantitative components. If you are interested, please email me.
Personal Identity
I grew up outside Chicago, and went to school(s) at Wesleyan University, USC, and Northwestern University. I currently live in New York, with a partner who is a marketing manager for an educational nonprofit. I love movies, like to cook, and I can do a mean lindy swing out. I am INTP.
August 15, 2008
In praise of the lazy fund
Filed under: Markets — Peter @ 8:38 am
If you had invested 1/3 of your money in Vanguard’s Total Stock Market Index (VTSMX), 1/3 of your money in Vanguard’s Total International Stock Index (VGTSX), and 1/3 of your money in Inflation-Protected Securities (VIPSX), your $10,000 at the outset of the year would be worth about $9135. And that does not include periodic distributions, which would bump it up to $9400 or so. So something like a 6-9% loss, year to date. The S&P 500 is down about 10% year to date.
I’m just saying, all things considered this is the set-it-and-forget-it way to go. Like a moron, I’m holding some specific stocks, as well as some non-lazy funds. Incredibly, the Vanguard REIT fund is up 3.5% year-to-date. In such a blech home real estate market, it’s pretty interesting.
3 Responses to “In praise of the lazy fund”
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This site is hand-woven, and heavily borrows from the wonderful blueprint framwork. Rock on, grids!
Not quite
, but getting there..
August 15th, 2008 at 9:18 am
Is there any fund that had a net positive gain this year? I’m trying to figure out what to do with my children’s college funds but I’m feeling very indecisive about doing anything right now.
August 15th, 2008 at 9:35 am
Not really, though even if there were you probably would not want to get involved with them. Long-term investment in anomalies is a tricky business. I mean, Halliburton is up like 30% in the last year, but do you want your kid’s college to be paid for by war profiteering?
Bond funds, like the inflation-indexed securities, are steady, as usual (boring boring), and with dividends probably put you up on the year. I’d say stick with total stock market, int’l stock market, and bond market; and then shift the percentages around. So in times of uncertainty/downmarket, 50% bonds. In times of more economic growth, less so.
Plus, over 20 years, it’s historically better to be more aggressive. But of course, past performance is no guarantee of future…
It’s tempting to buy like a share or something of berkshire hathaway, which is basically a managed mutual fund by Buffett, but still probably better to just go passive - less fees.
August 15th, 2008 at 10:04 am
To wit