Eight Signs You are a Seasoned Investor by Johnathan Clements

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pkcrafter
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Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by pkcrafter »

Eight signs you are a seasoned investor from Johnathan Clement's Blog, Humble Dollar

Instead of providing a direct link, I'm providing a link to all the lists. Seasoned Investor is 3rd on this list.

http://www.humbledollar.com/money-guide/the-lists/

Also read "11 Signs You Own the Right Portfolio"


Paul
Last edited by pkcrafter on Mon Jun 26, 2017 8:22 pm, edited 1 time in total.
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Random Walker
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Re: Eight Signs You are a Seasoned Investor by Johnatan Clements

Post by Random Walker »

Great column. Thanks for posting.

Dave
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Re: Eight Signs You are a Seasoned Investor by Johnatan Clements

Post by willthrill81 »

It's pretty good, mostly Boglehead-ish.

However, I disagree completely with this statement.
"You realize that markets are unpredictable and that it’s extremely difficult to earn market-beating returns, so you always have some money in bonds and some money in stocks"
Neither the fact that markets are unpredictable or that it's very difficult to beat the market has anything to do with whether one should hold bonds or stocks in the accumulation phase. Even in the withdrawal phase, if one's portfolio is sufficiently large to allow very flexible withdrawals, one could be 100% stocks even then (some Bogleheads do precisely this).
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Taylor Larimore
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Re: Eight Signs You are a Seasoned Investor by Johnatan Clements

Post by Taylor Larimore »

Paul:

Jonathan Clements is second only to John Bogle when it comes to "helping ordinary investors get a fair shake."

I followed Mr. Clements for many years in the Wall Street Journal where he wrote over 1,000 columns. I saved many of them.

I love his 11 signs you own the right portfolio that you also linked.

Thank you and best wishes.
Taylor
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Re: Eight Signs You are a Seasoned Investor by Johnatan Clements

Post by SimplicityNow »

Thanks for the link.

Wise words.
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Re: Eight Signs You are a Seasoned Investor by Johnatan Clements

Post by Mel Lindauer »

Taylor Larimore wrote:Paul:

Jonathan Clements is second only to John Bogle when it comes to "helping ordinary investors get a fair shake."

I followed Mr. Clements for many years in the Wall Street Journal where he wrote over 1,000 columns. I saved many of them.

I love his 11 signs you own the right portfolio that you also linked.

Thank you and best wishes.
Taylor
Yes, Taylor, Jonathan is a real Bogleheads favorite and has been for many years.

I'm pleased to let everyone know that Jonathan will be attending the 2017 Bogleheads Conference in October and will be on the Q&A with the Experts Panel. He'll also be signing copies of his books for those who bring them to the Conference.
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by bertilak »

  • You have mixed feelings about rising markets. Yes, it’s great that your portfolio has grown fatter. But it also means future returns will be lower. By contrast, tumbling markets excite you, because you could get the chance to scoop up investments at bargain prices.
As long as you are contributing and not withdrawing!
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pkcrafter
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by pkcrafter »

bertilak wrote:
  • You have mixed feelings about rising markets. Yes, it’s great that your portfolio has grown fatter. But it also means future returns will be lower. By contrast, tumbling markets excite you, because you could get the chance to scoop up investments at bargain prices.
As long as you are contributing and not withdrawing!
Ahh, it still works when withdrawing. When stocks are down, you rebalance (buy at bargain prices) and take distributions from bonds/cash. :moneybag

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by bertilak »

pkcrafter wrote:
bertilak wrote:
  • You have mixed feelings about rising markets. Yes, it’s great that your portfolio has grown fatter. But it also means future returns will be lower. By contrast, tumbling markets excite you, because you could get the chance to scoop up investments at bargain prices.
As long as you are contributing and not withdrawing!
Ahh, it still works when withdrawing. When stocks are down, you rebalance (buy at bargain prices) and take distributions from bonds/cash. :moneybag

Paul
Good point, but you still end up with a loss. It leaves both stocks and bonds down. You will get less in bond dividends.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by RadAudit »

pkcrafter wrote: I'm providing a link to all the lists.
Thanks
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by nedsaid »

All I know when it comes to investing and the markets isn't much. Whenever I think that I have it all figured out, the markets have taught me humility. When you realize that you really don't know much is when you become a seasoned investor.

It seems that whenever I am really, really pleased with how my investments performed and I feel really, really good about my own abilities as an investor is when the bear market shows up. Then I do the face palm and wonder, how could I have been so wrong? Markets do that you know.
A fool and his money are good for business.
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Lieutenant.Columbo »

nedsaid wrote:...whenever I am really, really pleased with how my investments performed and I feel really, really good about my own abilities as an investor is when the bear market shows up. Then I do the face palm and wonder, how could I have been so wrong? Markets do that you know.
nedsaid,
Being really pleased with performance isn't a mistake, is it? A bear market isn't your fault, is it?
I don't see a reason for self-giving a hard time as long as your "actions" (and not your "thoughts") are adequate/correct/as planned. :wink:
Lt. Columbo: Well, what do you know. Here I am talking with some of the smartest people in the world, and I didn't even notice!
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by nedsaid »

Lieutenant.Columbo wrote:
nedsaid wrote:...whenever I am really, really pleased with how my investments performed and I feel really, really good about my own abilities as an investor is when the bear market shows up. Then I do the face palm and wonder, how could I have been so wrong? Markets do that you know.
nedsaid,
Being really pleased with performance isn't a mistake, is it? A bear market isn't your fault, is it?
I don't see a reason for self-giving a hard time as long as your "actions" (and not your "thoughts") are adequate/correct/as planned. :wink:
Pretty much I am telling people to not get cocky. Bull markets make heroes of us all.
A fool and his money are good for business.
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Top99% »

I love this one in "11 signs" : 8. Jim Cramer? Who’s that?
During the tech bubble I don't know if I lost more chasing Jim's picks or Fortune Magazine's picks. I have been passive ever since.
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by baw703916 »

Top99% wrote:I love this one in "11 signs" : 8. Jim Cramer? Who’s that?
During the tech bubble I don't know if I lost more chasing Jim's picks or Fortune Magazine's picks. I have been passive ever since.
Didn't he write a forward for one of the Bogleheads books? Or maybe it was one of John Bogle's?
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Taylor Larimore »

Didn't he write a forward for one of the Bogleheads books? Or maybe it was one of John Bogle's?
baw703916:

Mr. Bogle wrote the "Forward" to both Boglehead books: 1) The Bogleheads' Guide to Investing and The Bogleheads' Guide to Retirement Planning.

Best wishes.
Taylor
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Greg in Idaho
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Greg in Idaho »

I guess I'm fairly well seasoned...except the few times when I've had large chunks of cash to invest, then I have struggled a bit with this one:

"You can coolly decide whether to buy or sell, without getting fixated on what’s happened in the market recently or what price you paid for a particular investment."
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Random Walker »

I believe anyone who has invested from about 1998-2009 has seen a lifetimes worth of financial history in just a decade, and had the "opportunity" to gain a lifetime's worth of experience. There was the tech bubble and crash, the housing bubble and crash, and 2008 financial crisis. The similarities between the two bubbles were obvious.
The only thing we haven't seen in this timeframe is a super prolonged Japan like bear. Perhaps we have learned a false sense of optimism and security because we have seen "V shaped" recoveries in the stock market.

Dave
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by Taylor Larimore »

The only thing we haven't seen in this timeframe is a super prolonged Japan like bear. Perhaps we have learned a false sense of optimism and security because we have seen "V shaped" recoveries in the stock market.
Dave:

You make a very good point which is one reason for holding bonds and international stocks.

Thank you and best wishes.
Taylor
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Re: Eight Signs You are a Seasoned Investor by Johnathan Clements

Post by GAAP »

Top99% wrote:I love this one in "11 signs" : 8. Jim Cramer? Who’s that?
During the tech bubble I don't know if I lost more chasing Jim's picks or Fortune Magazine's picks. I have been passive ever since.
I've only ever seen Cramer on an airport TV screen, and never understood how anyone could take him seriously -- or stand listening to him long enough to be influenced by him...
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