Investors Are Ignoring the REAL Risks to the Market: Bogle

[Ever Ready]

Investors Are Ignoring the REAL Risks to the Market: John Bogle
Video Interview with Matt Nesto Breakout 2-8-2013

http://finance.yahoo.com/blogs/breakout/investors-ignoring-real-risks-market-john-bogle-140549567.html

[gadfly888]

JB hits the proverbial nail on the head. Compared to a nuke taking out NYC, these are the best of investing times.

Gad-

[bottlecap]

I saw this on yahoo and don't really get the title. It's always true that the real risks are war, global pandemic and the threat of nuclear war. Did the author write an entire article and miss the point of Mr. Bogle's seemingly tongue-in-cheek remark?

JT

[dbr]

The pertinent comment is this one:

"To hear this veteran investor tell it, the main risk most individuals face is themselves — especially when it involves trying to time market moves or other short-term trends while driving in and out of the stock market. When asked to characterize his feelings about the oft-cited ''risk-on, risk-off'' tone of the markets, Bogle simply says it's ''kind of silly" to try to make money that way, adding that he's never known anyone who had the capacity to do it successfully for any great period of time."

[baw703916]

If the biggest risk that investors face is their own psychology, and they are ignoring it...isn't that a good thing?

[Fallible]

The pertinent comment is this one:

"To hear this veteran investor tell it, the main risk most individuals face is themselves — especially when it involves trying to time market moves or other short-term trends while driving in and out of the stock market. When asked to characterize his feelings about the oft-cited ''risk-on, risk-off'' tone of the markets, Bogle simply says it's ''kind of silly" to try to make money that way, adding that he's never known anyone who had the capacity to do it successfully for any great period of time."

Also, his initial hesitation and little laugh just after the question was asked were a perfect introduction to the "silly" remark. And his comments on global risks certainly put it all in perspective.

[Fallible]

If the biggest risk that investors face is their own psychology, and they are ignoring it...isn't that a good thing?

Actually, ignoring their psychology, i.e., not acknowledging or understanding it, can lead to investing mistakes like market timing.