The Stingy News Weekly: 06/12/2022
The worst years for balanced indexing
"Since bonds are having such a rough go at it during a correction in the stock market, this year is currently on par with 60/40 returns in 2008 and 1930. Not the kind of company you want to keep." [Markets]
Does turnover still matter?
"For professional fund managers, transaction costs have come down significantly as well and risk management tools have become more sophisticated and which may have reduced the relationship between portfolio turnover and fund returns." [Funds]
A normal housing market
"While the Fed is slowly raising the Fed Funds Rate, mortgage rates didn't want to wait around for Jerome Powell. Rates went from 3% in January to more than 5% by April. And the move higher was basically uninterrupted. The only period in history that comes even close to matching the speed and magnitude of this move was in the early 1980s." [Real Estate]
The 6% mortgage
"Current 30-year mortgage rates are around 5.85%. Mortgage rates are probably close to the peak for this cycle (depending on inflation) but might rise to the low 6% range. Mortgage payments - for buying the same home - are up over 50% year-over-year." [Real Estate]
A bloody waste
"Hemochromatosis is a disorder in which extra iron builds up in the body. A potential treatment is phlebotomy so patients with hemochromatosis want to donate blood and donate regularly. The American Red Cross, however, does not permit people with hemochromatosis to donate blood. Why not? The blood is safe and effective. The blood of these patients doesn't have much, if any, extra iron (the iron builds up in the body not so much in the blood per se). The 'problem' is that people with hemochromatosis benefit themselves by giving blood and for this reason their blood is considered tainted by the American Red Cross." [Not the case in Canada where they're happy to take 500ml with extra iron] [Health]
Commonness of divorce in America
"Out of people who married at least once, the percentage of people who were married more than once or divorced approaches 50 percent as you get to age 60. But mortality appears to take precedence after that." [World]
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