price.date, transaction.post_date and neutral time

[Wm]

On 14/02/2018 10:58, Mark Haanen wrote:
> Wm via gnucash-devel schreef op 13-02-18 om 17:10:
>> On 13/02/2018 09:12, Alen Siljak wrote:
>>
>>
>>> - we enter the investments we own, i.e. Stocks Fund, Bonds Fund, 
>>> Direct Bond, favorite company ABC stock, etc.
>>> - we link the investments (by symbol) to the allocation classes above.
>>>    Stocks Fund => stocks
>>>    Bonds Fund => bonds
>>>    Direct Bond => bonds
>>>    ABC => stocks
>>> - we get the latest prices
>>
>> That's looking self referential to me as your plan allows for a 1.75% 
>> government bond to be called a stock and a stock to be called a bond.
>>
>> all a bit pointless.
>>
>>> All that computer software needs to do (and, deep into 21st century 
>>> this is the least I'd expect my personal finance app to do) is to 
>>> calculate the current value of the holdings, therefore asset classes, 
>>> and say:
>>> "you have 50K in investments, out of which 30% is in stocks and 70% 
>>> in bonds, while your allocation is 10%/90%".
>>
>> Isn't that just back referencing ?
>>
>> I own a dog, I check my dog ownership and find I own a dog.
>>
>> Neither I or the dog should be surprised. 
> 
> Not really, because the value of the portfolio assets (and therefore the 
> value of the different asset classes) change over time.

But not as much as you suggest.

> Say my target asset allocation is 10%/90% (as above) and that is the 
> ratio in which I divide the amount I use buying my assets (say $100).
> However, I don't own $90 of stocks, but rather 2 stock units priced at 
> $45. The same for my bond assets (e.g. half a bond currently priced at 
> $20).
> 
> Over time the prices of the underlying assets in my portfolio change.
> For instance, during recession and with quantitative easing in place, 
> bond prices climbed while equity prices dropped.##

Except they haven't.  you should *not* expect gnc to do predictive 
pricing.  that is an absolute NO NO NO

> So now my 2 stock units are only worth $60 total, while my bond category 
> assets climbed to $30.

But that is only in your mind.  My stocks and bonds didn't do that!

> All that Alen is saying that he wants a report which compares my target 
> ratio of 10/90 with my current value ratio of 33/67, as this may lead to 
> a rebalancing of the portfolio.

I am able to say that we do not actually give investment advice.  Usual 
reasons.

====================
I'm thinking at 10 stocks and 90 bonds (without knowing the currency or 
market) it is just a rip off or it is a portfolio for a person that is 
about to die.
======================
yeah, I know a senior can whack me for this, but it is in conversation, 
so ... 33 / 67 is super conservative I'd check the switching costs. 
That is how the sales person gets their money.
=========================

If Mark Haanen / Alen Siljak or anyone else related to them is in a 
client / professional relationship I think we should know.

-- 
Wm