"Jack Bogle: Investors should 'always be in' the stock market"

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Taylor Larimore
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"Jack Bogle: Investors should 'always be in' the stock market"

Post by Taylor Larimore » Wed Sep 12, 2018 8:34 pm

Bogleheads:

Vanguard founder and former CEO Jack Bogle tells CNBC's "Power Lunch" that investors shouldn't try to time the market.

Jack Bogle: Investors should 'always be in' the stock market

Thank you, Jack. When you speak--we listen.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by Castanea_d. » Wed Sep 12, 2018 10:10 pm

Good advice from Mr. Bogle, as always. Never all the way out of the market, or all the way in.

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by Vanguard Fan 1367 » Thu Sep 13, 2018 7:59 am

I "should have" really bought a lot more stock funds when my investments dropped in 2008 or so. I didn't back up the truck and buy more because they were on sale but I didn't make the mistake mentioned in the article about dumping stocks when they were significantly down. They have roared back with a vengeance.

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by azanon » Thu Sep 13, 2018 8:20 am

Vanguard Fan 1367 wrote:
Thu Sep 13, 2018 7:59 am
I "should have" really bought a lot more stock funds when my investments dropped in 2008 or so. I didn't back up the truck and buy more because they were on sale but I didn't make the mistake mentioned in the article about dumping stocks when they were significantly down. They have roared back with a vengeance.
I don't necessarily agree with you. If you had an appropriate, or reasonable (with respect to your overall portfolio) allocation to stocks near the end of that drop, that would have been a reasonable thing to do given the average stock valuations at the valley in March 2009. I'm assuming from your wording, that you did have some US stocks (say at least 20-30% of your portfolio).

An eventual outcome doesn't determine who was wise or not. More often, it determines who just got lucky or not. Wise decisions are prudent ones given the facts known at the time of the decision, not what happens after-the-fact. The last time US stocks were significantly undervalued was the mid 1980s (source Shiller Data which reflects P/E 10s at/near "10" or less).

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by abuss368 » Thu Sep 13, 2018 8:08 pm

Great advice from Jack Bogle as always!

Thanks!
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by iamlucky13 » Thu Sep 13, 2018 10:00 pm

The title could be a little more clear.

I clicked on the thread thinking it would detail an argument against strategies like extremely cautious investors following a glide slope down to 0% equities.

The linked article really is just a reiteration of what Mr. Bogle always says - "don't move in and out", as opposed to "don't ever get out."

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by tesuzuki2002 » Fri Sep 14, 2018 4:41 pm

Vanguard Fan 1367 wrote:
Thu Sep 13, 2018 7:59 am
I "should have" really bought a lot more stock funds when my investments dropped in 2008 or so. I didn't back up the truck and buy more because they were on sale but I didn't make the mistake mentioned in the article about dumping stocks when they were significantly down. They have roared back with a vengeance.
Backing up the TRUCK was fun and gut wrenching at the same time! But it paid off for me.!

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by jhfenton » Fri Sep 14, 2018 5:30 pm

iamlucky13 wrote:
Thu Sep 13, 2018 10:00 pm
The title could be a little more clear.

I clicked on the thread thinking it would detail an argument against strategies like extremely cautious investors following a glide slope down to 0% equities.

The linked article really is just a reiteration of what Mr. Bogle always says - "don't move in and out", as opposed to "don't ever get out."
I had the same expectation, and it would have been a position that I generally agree with. I don't believe that anyone relying on a portfolio for support in retirement should ever be less than 25-30% equities, and most a bit more.

The obvious exception is folks with very limited assets who live entirely on SS and pension income. For those folks, for whom their assets are essentially their emergency fund, it is reasonable to have it all in safe instruments.

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Re: "Jack Bogle: Investors should 'always be in' the stock market"

Post by Vanguard Fan 1367 » Sun Sep 16, 2018 9:11 am

tesuzuki2002 wrote:
Fri Sep 14, 2018 4:41 pm
Vanguard Fan 1367 wrote:
Thu Sep 13, 2018 7:59 am
I "should have" really bought a lot more stock funds when my investments dropped in 2008 or so. I didn't back up the truck and buy more because they were on sale but I didn't make the mistake mentioned in the article about dumping stocks when they were significantly down. They have roared back with a vengeance.
Backing up the TRUCK was fun and gut wrenching at the same time! But it paid off for me.!
I am glad that you backed up the truck. Thanks for the report.

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