Brinker didn't mention how well the international markets have done which is odd since they have done even better!
Emerging markets leads the list up 50% YTD!
Gold and precious metals is a close second up 48% YTD.
|Vanguard Funds||Symbol||Price||SEC Yield||YTD Return |
|S&P 500 Index Fund ||VFINX||$92.78||2.14%||13.02%|
|Emerging Markets Fund ||VEIEX||$22.42||—||50.47%|
|Extended Mkt Index ||VEXMX||$29.22||1.23%||21.73%|
|European Stock Index ||VEURX||$24.19||—||18.52%|
|GNMA Fund ||VFIIX||$10.68||3.99%||3.68%|
|Inflation-Protect Sec ||VIPSX||$12.12||1.54%||5.25%|
|Pacific Stock Index ||VPKIX||$9.58||—||16.69%|
|Pacific Stock Index Inv ||VPACX||$9.57||—||16.71%|
|Precious Metals & Mining ||VGPMX||$17.31||—||48.04%|
|REIT Index Fund Inv ||VGSIX||$12.70||note||8.47%|
|Total Bond Mkt Index Inv||VBMFX||$10.29||3.71%||3.82%|
|Total Int'l Stock Index ||VGTSX||$13.34||—||23.63%|
|Total Stock Market Index Fund ||VTSMX||$24.73||1.99%||14.75%|
|Total World Stock Index Fund||VTWSX||$15.98||—||19.97%|
|Prime Money Mkt Fund||VMMXX||$1.00||0.22%||0.47%|
|Tax-Exempt Money Mkt||VMSXX||$1.00||0.27%||0.35%|
A caller asked about the viability of Vanguard's GNMA fund. Brinker said she must be "going off the deep end" worrying about this as that fund is backed by the full faith and credit of the US Government. That means the government will print money to bail out the fund should it run into trouble. I've never heard Brinker mention that the government does not guarantee you will earn interest or that if the Government National Mortgage Association runs into solvency troubles it could take some time to get your money back, but you will get it back.
Obama's Health Care Plan
Many callers called to talk about the health care proposals. One wanted to know if taxes could go lower. Brinker said the CBO estimated the programs being proposed will cost between $1 trillion and 1.5 trillion US dollars. With that extra cost, Bob doesn't see how taxes could go down. Brinker said the people who are complaining loudly at the town hall meetings are retired folks who like the great deal they have now and don't want any changes.
Replace US Dollar with a "World Currency"
Brinker again said he was in favor of a new World currency based on the currencies of the "industrialized nations of the World" that would compete with the US Dollar and all the other international currencies such as the Euro and Yen. He thinks this would "help to bring the politicians in Washington back to their senses" to protect the integrity of the US dollar due to "spending gone wild."
The Federal Reserve
About the people who complain about the Federal Reserve (the Fed) having too much power, Brinker says they are wrong. The Fed's mission is to maximize employment consistent with minimizing inflation. Brinker says ANY attempt to politicize or eliminates the Fed turns monetary policy over to the "people in Washington who are spending the country into oblivion."
If you turn the monetary system over to the politicians, then its over at that point.He says what the politicians will do is simply inflate to pay down the national debt with inflated dollars. In the extreme you will need a wheelbarrow full of money to buy a loaf of bread. He says "we've been there and done that."
Health Insurance Reform
Brinker says renaming the health care reform debate to "health insurance reform" could lead to fewer health insurance policies being written. He says insurance companies won't write policies if they can't make money so we may find it difficult to get health insurance just as it is now hard to get hurricane insurance in the gulf states.
Brinker's Saturday guest was Michelene Maynard who Bob says was ahead of her time when she wrote in 2003, "The End of Detroit: How the Big Three Lost Their Grip on the American Car Market."
Michelene Maynard said she wishes she was wrong and that the people in the industry had read her book and made changes so they could have prevented it from happening. Follow Micki on Twitter.
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Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 131% (over a double!) vs. the S&P500 DOWN 1.7% vs. NASDAQ down 7.9% (All through 9/7