Indexing will fail investors in next decade

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WanderingDoc
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Re: Indexing will fail investors in next decade

Post by WanderingDoc » Mon Jun 11, 2018 10:03 pm

jeffyscott wrote:
Mon Jun 11, 2018 5:49 am
WanderingDoc wrote:
Sun Jun 10, 2018 9:55 pm
Umm.. literally everything that has a government attached to it (which is close to everything period) is enforced and enforceable by violence. This is nothing new. Its a sad truth we all have to live with unless you want to go entirely off the grid.
I think some of us are trying to understand your logic, which seems to be something like: "Paper has no value, currency can be manipulated, printed, and created out of thin air in all sorts of ways"...therefore, real estate is better than stocks and bonds. :confused
Yes, it is. It has many more advantages, better returns, better tax treatment, leverage that actually benefits you, and produces INCOME (not a sad 1.8% dividend). Real estate can be felt and touched, and you have significantly more control of your investment from front to back, sideways, upside down than stocks or index funds which are buy then hope and pray.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

WanderingDoc
Posts: 1100
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Re: Indexing will fail investors in next decade

Post by WanderingDoc » Mon Jun 11, 2018 10:04 pm

wrongfunds wrote:
Mon Jun 11, 2018 10:23 am
Not only land can be created out of water, the existing land can be build *up*. The last time I tilted up my head, there was no limit as to how high the things on the land can go! If you can't grow in X or Y axis, there is always Z axis for RE to spread out.
Zoning laws.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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jeffyscott
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Re: Indexing will fail investors in next decade

Post by jeffyscott » Tue Jun 12, 2018 6:39 am

WanderingDoc wrote:
Mon Jun 11, 2018 10:03 pm
Yes, it is.
Maybe, maybe not, but the point was that "Paper has no value, currency can be manipulated, printed, and created out of thin air in all sorts of ways", is not a logical reason to buy real estate.

Many people (and I am one) do not want to be a landlord and don't want debt. I'd rather lend to people like you who do and collect the interest on the mortgage debt in a tax-deferred account.

I think the tax magic of converting ordinary income to capital gains via real estate is only of value to those in high tax brackets. Most people are (like me) in the 12% or below bracket and many also have most investments in tax-advantaged accounts. Nearly 100% of my investments are in IRA or Roth accounts and if I do someday need a taxable account, the capital gains and qualified dividend tax rates will be 0%.

You can feel and touch it though...
press on, regardless - John C. Bogle

JoeRetire
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Re: Indexing will fail investors in next decade

Post by JoeRetire » Tue Jun 12, 2018 6:46 am

"Invest in water. Water scarcity is widely perceived to be a serious issue in only a few countries in North Africa, the Middle East, and Australia, but the reality is different."

I invested in water just this morning. In addition to my normal cup of coffee, I invested in a glass of water when I took my pills.
Does that count? Or did I fail?

Hugh Prolly-Wright
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The end of indexing?

Post by Hugh Prolly-Wright » Tue Jun 12, 2018 10:50 am

[merged into existing topic - moderator prudent]

Granting that this fellow is likely trying to sell a book, are there still valid points he makes about the inability of past assumptions to prevail?
https://www.marketwatch.com/story/why-i ... 2018-06-06

His point about the decline in productivity seems very plausible. The demographic shift driving this is the same reason SS is going to be in the red in a few years.

What say you, fellow bogleheads?

Call_Me_Op
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Re: The end of indexing?

Post by Call_Me_Op » Tue Jun 12, 2018 11:00 am

I am sticking to my plan.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

ZZZZBest
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Re: The end of indexing?

Post by ZZZZBest » Tue Jun 12, 2018 11:12 am

Already discussed here.

viewtopic.php?p=3962216#p3962216

Summary:
The stock market is high.
The world is changing.
The author has a superior plan and wants to invest your money for you, and plans to get rich doing so.

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Tyler Aspect
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Re: The end of indexing?

Post by Tyler Aspect » Tue Jun 12, 2018 2:22 pm

Cherry-picking negative aspects of economy; avoiding mentioning positive aspects of economy. These pitches are nothing special.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

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