Jack Bogle: Should you buy Index Funds at All-Time Highs?

Рет қаралды 693,218

Күн бұрын

Should passive investors continue to buy market tracking ETFs, even with the market at all-time highs? Today we learn about John "Jack" Bogle's 5 timeless tips for passive investors to navigate expensive stock markets.
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#passiveinvesting #stockmarket
DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

Пікірлер: 1 200

@luciali4513 3 жыл бұрын

1. keep investing 2. time is your friend 3. impulse is your foe 4. stay diversified 5. stay the course by Jack Bogle

@Honestly__now 3 жыл бұрын

It’s all true

@anonymousinvestor9593 3 жыл бұрын

Yes! Just shared my $3m portfolio on how I’m doing just that. 😄

@davidjames1684 3 жыл бұрын

That method has some flaws.

@ballaking1000 3 жыл бұрын

@@Honestly__now Thank you random nobody for the confirmation; I wasn't quite sure to believe it when the tried-and-true billionaire-investor said it.

@msbarb1 3 жыл бұрын

Thank you for summarizing the points

@mallardbeacon6502 3 жыл бұрын

TLDR: yes, historically the market is often at an "all time high" and it still goes up to a new all time high.

@dolbysurround2269 3 жыл бұрын

Thanks man 👍

@Rogerisateur100AD 3 жыл бұрын

Though sometimes it takes 17 years to hit a new high ..

@jakebosworth6253 3 жыл бұрын

Also if it drops, your dividend reinvestment could hit at a low and when it goes back up, it’ll bring up your average returns

@EricZucchini 3 жыл бұрын

thank you 2x speed is not enough

@jreamscape 3 жыл бұрын

Bear markets can last years let’s not forget inflation

@WeLoveValue 3 жыл бұрын

If you are a passive investor then today's price is irrelevant. Buy when its up, buy when its down and buy when it goes sideways :)

@dan_mclean 3 жыл бұрын

Minor call out: 1997 to 2021 S&P price growth is 300%, but with dividends reinvested (true return) it’s 500%. Yet another win for good ole Jack

@Pale_ghost 3 жыл бұрын

how much is the dividend for S&P?

@Simon-vo7gi 2 жыл бұрын

@@Pale_ghost It depends on the dividends of the stocks that are part of the S&P

@2011blueman 2 жыл бұрын

Total return with dividend reinvestment from January 1997 to July 2021 is 464.741%.

@SM-xy3ff 2 жыл бұрын

Do we need to take inflation into account?

@bossman4401 4 ай бұрын

Inflation is at least half of that so yes

@burrussroger7352 2 жыл бұрын

I maintain that investing in stocks is still one of the very best means of doubling or holding your funds. Who thinks otherwise? Let's debate. Lol

@kevinfong8923 2 жыл бұрын

@@dannywalters958 This is looking like a plug.

@Bobbysmith54999 2 жыл бұрын

Of course it is. Became a millionaire by 36. No inheritance and only make 50-60k in my career.

@sarahmulhollen3684 2 жыл бұрын

In an unprecedented bull market ofc. Some people are neglecting putting their gains towards more education or paying off long term debt because they see the unrealized gains tho & think they’ll be missing out or something, and I think that’s something we should address as responsible people looking to better our communities Edit: misspelling of bull mkt

@Ulysses042 2 жыл бұрын

This is blatantly a coordinated sales pitch.

@generalqwer 2 жыл бұрын

@@Ulysses042 I think its spam or a scam, seen the same thing in other videos comments.

@BCV2023 3 жыл бұрын

Time in the market beats timing the market! ⏰

@elinsd 3 жыл бұрын

Timing the market saves you a few bucks but creates lots of trading anxiety and it doesn't pay off.

@Repsforjesus67 3 жыл бұрын

@@elinsd Timing it perfecty actually is still worse if you kept saving all your money until the perfect time to invest it all. In that case you'd be better off just investing every month, because you have more time in the market that way

@redtails 3 жыл бұрын

I wouldn't want to be the guy who bought in 1999 while my neighbour bought in 2001 lol.

@Longtack55 3 жыл бұрын

and stock picking by tedious research beats that.

@Repsforjesus67 3 жыл бұрын

@@Longtack55 Sure but only 2% of people are able to do that succesfully, over a period of 20+ years

@audigex 3 жыл бұрын

For me it's simple: The entire point of "passive investing" is that you don't decide whether the market is too hot or undervalued. That would be active investing, however mild the "active" component is.

@parkerbohnn 2 жыл бұрын

That's the surest way to lose all your money. When ponzi's implode everything crashes.

@slaphappie218 3 жыл бұрын

Thank you for explaining what Bogle said , it was a bit difficult to understand hime

@christophdenner8878 3 жыл бұрын

Thank you for bringing this up! Jack Bogle is always a source of inspiration.

@XShollaj 3 жыл бұрын

Jack Bogle was a great man and a legendary investor!

@linos1987 3 жыл бұрын

Thanks for mentioning Jack, everyone that invested a dollar in a market should know him. Legend.

@carolynrose1816 Жыл бұрын

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

@sherryie2 Жыл бұрын

Currently, my primary worry is how to increase revenue during periods of quantitative easing. I cannot afford to witness my savings dwindle away.

@AUstinnesc Жыл бұрын

@@corrySledd How do I Meet this Lady?

@AUstinnesc Жыл бұрын

@@corrySledd Thanks for the info, i found her website and sent a message hopefully she replies soon.

@chrisp4170 Ай бұрын

here we go...

@myrle-v4g 4 күн бұрын

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

@thuylamson-z7t 4 күн бұрын

Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

@Daneilchirs 4 күн бұрын

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.

@voncile-y5s 4 күн бұрын

Could you possibly recommend a CFA you've consulted with?

@Daneilchirs 4 күн бұрын

My CFA ’ANGELA LYNN SCHILLING’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

@voncile-y5s 4 күн бұрын

Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.

@dean2663 3 жыл бұрын

I’m 58 and wish ETFs existed when I was young and just bought QQQ, SPY and DIA every month. I would easily be over $10 million.

@poopyjoe4016 3 жыл бұрын

time is your friend, if you have em

@harsha7029 3 жыл бұрын

"Compound interest is a miracle and time is your friend". Sadly, I understood this in my late 20s. But I am happy that I finally understood how much a small investment every month can create a substantial wealth after 10-20years.

@vidz953 3 жыл бұрын

Better than getting it in your 30s, like myself! ☺️

@Jack-xk3qp 3 жыл бұрын

@@vidz953 you are in, better than most ppl!

@vidz953 3 жыл бұрын

@@Jack-xk3qp very true! It's all relative, isn't it? ☺️

@gsards 2 жыл бұрын

How does compound interest work in stocks?

@lessonsbeyond7773 2 жыл бұрын

We seriously keep down playing 20s and 30s like these two ages are the cut off mark. You literally start adulting in your 20s 2 years after become a legal adult. By 30, you have a whole decade to get it together if you havent already. Reality is you should be concerned or disappointed until you reach late 40s or 50s and realize you havent done anything. Relax you are ok and everything will be fine. Keep learning and growing in your 20s and 30s. This whole retire in 30s BS is few and far between and unrealistic on a mass scale.

@MartySantiagoo 3 жыл бұрын

It makes sense cuz “all time highs” are all relative. 2008 “all time high” seems like a blip in a linear line now. We will look back in 40 years and today’s high will seem like a blip cuz of mass inflation, smarter investors due to increasing financial literacy, better technology across all sectors, etc.

@AISkillBoost 3 жыл бұрын

There is also dividends (compounded). If you bought and held at the top of the tech bubble you probably do better than that.

@2011blueman 2 жыл бұрын

16:33 Correction: You're completely ignoring the dividends. Total return with dividend reinvestment from January 1997 to July 2021 is 464.741%.

@ThomasFerrugia 2 жыл бұрын

Noticed that too. Thanks for calculating!

@giovannip8600 2 жыл бұрын

What's the formula to calculate compound returns with dividend reinvested?

@MoneywithDan 2 жыл бұрын

I love the simplicity of Bogle’s wisdom on investing and using index funds. I have followed his strategy for years with great success and using etfs just makes my life and investing so much easier and I don’t need to worry too much about stock market crashes as I just need to focus on the long term. Stay the course!

@BullInvestor 3 жыл бұрын

Dollar cost averaging is the way to go for passive investing. No one knows when the next market drop will be. Don’t play the guessing game, play the long-term game of averages! Great content man, Bogle is super underrated.

@thelist786 3 жыл бұрын

+1.2.5.6.4.9.4.8.5.5.5

@WeLoveValue 3 жыл бұрын

agreed! If you're a passive investor just DCA

@tpplatfzft 3 жыл бұрын

DCA needs discipline.

@BullInvestor 3 жыл бұрын

@NihlusGreen Lump sum investing could very well work too. Even though DCA has produced better results in the past, who’s to say lump sum investing won’t work better in the future.

@BullInvestor 3 жыл бұрын

@@tpplatfzft I’d argue that all forms of investing need discipline

@rudolphbattle8238 3 жыл бұрын

Never believe it’s not acceptable to take a pause. Even the market takes a pause. 👍🏽

@sapinva 3 жыл бұрын

Take a pause from irrational investing. There are always dividends and metals, and put aside some cash for new lows.

@QUINTUSMAXIMUS 3 жыл бұрын

@@sapinva Yes, I added to my dividend stocks and bought some silver and gold. I also added to municipal bonds. I am diversifying more. I have a decent amount of growth stocks for sure.

@noelstout3056 3 жыл бұрын

ETFs are useful in instantly diversifying an investor’s income portfolio, Investors should focus on buying top stocks breaking out past correct buy points.

@ethansmith2499 3 жыл бұрын

it may be an appropriate time to be looking at industrial stocks now. Especially since some of them are now trading at more reasonable prices.

@emmageorge3728 3 жыл бұрын

I’m trying to find top moving stocks that could generate profits.

@noelstout3056 3 жыл бұрын

@@emmageorge3728 You can start building a watchlists, And always look for big percent gainers and probably focus on stocks that are already moving.

@jamesowen9384 3 жыл бұрын

Through proper financial planning, there are more people achieving financial freedom faster today than ever before and the stock market is the best place.

@emiliobarretto9732 3 жыл бұрын

Identifying the best stock is tasking, couple with so much volatility with most headline stocks. I almost lost all my money trading.

@thebookwasbetter3650 3 жыл бұрын

""You miss 100% of the stocks you don't buy." ~ Jack Bogle" ~ New Money, 1/10/21

@MrGmac2011 3 жыл бұрын

"Consistently dollar cost average the Total US stock market Index" - Sounds so simple, but its NOT. There are a lot of distractions (get rich quick) out there.

@johnclark8631 3 жыл бұрын

And there lies the only part that is not simple. The human irrational response. Most of the time when you realize something can get you huge quick returns you’ve already missed it and are more likely to get caught in the correction of that volatile stock and lose money.

@parkerbohnn 3 жыл бұрын

Dollar cost averaging doesn't work for ponzi's. The U.S. stock market is the biggest ponzi of all time much bigger than tulip bulb mania.

@Biancoo 3 жыл бұрын

@@parkerbohnn you trolling right?

@parkerbohnn 3 жыл бұрын

@@Biancoo Remember the old saying they couldn't see the forest for the trees? You wouldn't know a ponzi if it fell on you. Today's stock market makes the summer of 1929 look like a stellar buying opportunity.

@Biancoo 3 жыл бұрын

@@parkerbohnn Yea you probably right , stay out of it , you are missing out my friend , if the stock market of america is a scam., probably all america is a scam then , never heard more stupid thing.

@jacobklein8156 3 жыл бұрын

Just buy the index fund, forget about it for a few years and you will not be disappointed.

@user-qm5eg3fg8c 3 жыл бұрын

That's a bit too simple. "for a few years" could be 20 years in the bad bubbles of the S&P, or in the case of Japan could be never.

@lukewarmape603 3 жыл бұрын

No dont just buy the index fund and forget about it. Buy into the index fund every month and dont check it every day.

@ctyreman11 3 жыл бұрын

@@lukewarmape603 Lump sum investing beats dca most of the time.

@lukewarmape603 3 жыл бұрын

@@ctyreman11 literally the opposite but ok

@TheCuratorIsHere 3 жыл бұрын

Unless you are Japan

@RWAfuture 3 жыл бұрын

Today it's not about return ON capital. Today it is about return OF capital

@captaindip6970 2 жыл бұрын

@shodotashirov 2 жыл бұрын

Is it that bad?

@ippolito3166 3 жыл бұрын

J. Bogle was of exceptional honesty and wisdom staying simple.

@haeimlee5584 3 жыл бұрын

I like how you explain simple and easy to understand! Thanks for your work!

@g30rg3-c5 3 жыл бұрын

Mate, please do a video showing your personal steps for creating an automatic monthly investment plan. Bank > Possible Fund/s > how the cash flows/allocation. Show the possible steps not the actual investment (you are not giving financial advice, only a possible method) - You will help many many people to invest.

@kiddobix 3 жыл бұрын

Everyone: “time is money” Also everyone: “I don’t have time!”

@corcoranmagriproperties 3 жыл бұрын

"The biggest risk is not investing at all". I like it! 💪💸

@godtrader6102 3 жыл бұрын

Depends if you need the money back quickly or not. If you need the money within he next 5 years, I'd say that's extremely risky because a 2nd crash is possible with the drawn out pandemic.

@elka-bs8590 3 жыл бұрын

@@godtrader6102 lol

@plastelina_ytb 3 жыл бұрын

Thanks. This type of content helps keep me on track for sure.

@fhowland 3 жыл бұрын

The market isn’t being driven up by speculation as much as its being driven up by artificially suppressed interest rates via the Fed.

@iddicted 3 жыл бұрын

When will that end?

@fhowland 3 жыл бұрын

@@iddicted according to the Fed, not any time soon

@Thurgor_Supreme 3 жыл бұрын

The whole thing is insane. They've made debt interest lower than inflation interest. Anyone who has the means to borrow can basically just steal money from everyone else.

@micblades1117 3 жыл бұрын

Trump tax cuts as well.

@colin1818 3 жыл бұрын

@@micblades1117 - Letting people keep their money isn't a problem

@realworldwellness3658 2 жыл бұрын

Very stoic for someone to bring up essential topics about the stock market while not sharing his expertise, but highlighting the tips given by the investors we look up to who have decades worth of experience.

@doragary3717 2 жыл бұрын

When you invest, you're buying a day you don't have to work

@Matt-wf7ry 3 жыл бұрын

You should buy when the market is high, medium, low and everywhere in-between.

@AussieMoneyMan 3 жыл бұрын

Correct.

@nonamed56 3 жыл бұрын

I disagree. Let's say I want to buy an ETF like VOO, but I believe the S&P500 will average negative values the next year? Why should I risk losing a percentage of my money in the first year if I can just wait it out?

@Bechteck 3 жыл бұрын

@@nonamed56 that's the worst idea you can do. Trying to time the market is a very bad strategy. If you are trying to get VOO, set up a recurring investment each month over let's say this year, if the market is going down, you are buying it cheaper and cheaper, if the market rebounds next year, you'll have great gains. Because you have essentially did a strategy called dollar-cost averaging. Take it from me, while you are waiting to find the right time to enter the market, that time might never come, or might come 5 years from now, who knows.

@Alumnikiid 3 жыл бұрын

@@nonamed56 Yea u can just wait for it. Let use know the date because we all would love to know when to go all in.

@leeshonnefarrow651 3 жыл бұрын

@@Alumnikiid lol

@astrahl 3 жыл бұрын

The market isn’t priced at intrinsic value 90% of the time. Speculation is built in to the price it’s just now much speculation varies. The market goes down not usually to meet intrinsic value but to meet future speculation

@rateme6166 3 жыл бұрын

how do you determine intrinsic value?

@astrahl 3 жыл бұрын

@@rateme6166 it’s a theoretical value based on current performance. That’s why I was saying it’s hardly ever valued there

@rateme6166 3 жыл бұрын

@@astrahl but current performance is current market price right which is speculative so..

@astrahl 3 жыл бұрын

@@rateme6166 no the idea is that’s it’s based on current performance of the actual business in terms of earnings. Not the stock itself. And what I’m saying is the stock doesn’t go down to its intrinsic value as a point of equilibrium because speculation of the future is always also included.

@rateme6166 3 жыл бұрын

@@astrahl hmm, im not too sure on this but isn't a stock a share of that business in terms of its performance including its earnings etc? or is there a distinction between the stock itself and the business

@ChaosCamo 3 жыл бұрын

Subscribed, great channel and content!

@spacecowboy2483 3 жыл бұрын

This is a great video. The cherry on top would have been the comparison of the current purchasing power of the 10K invested in 1997 vs those same 10K left in a safe (that is, not generating returns and being left subject to inflation). Edit: Did the calculation myself. To have the same purchasing power of those 1997 10K in 2021 you would need 16.7K. But since you didn't invest them, they are still 10K, which means you are now 6.7K short (that is, you lost 67% of your capital), whereas you'd be over 100% richer if you did enter the market back then. This is of course a worst case scenario. If instead of leaving the money in a safe you left it in a bank account in a certificate of deposit you might still be a little better off. Not much, though.

@criii4950 3 жыл бұрын

Man I really like your channel, I will stay tuned for sure.

@LA-fr7fx 2 жыл бұрын

This was a very good video!

@drewhennek3717 3 жыл бұрын

I’ve watched a handful of your videos and I must say: change nothing. Great content without sinking to the level of constant click bait crap “market crash” this “game over” that. Keep up the great work, love your clarity and integrity! One of a very select few respectful content creators, cheers!

@robs2579 3 жыл бұрын

This is click bait content lol

@sanguinj 3 жыл бұрын

Great video! Very well structured. I take away for passive investors from this video the following : Invest 50% or a portion you like TODAY. Then when the bubble burst then buy the rest of the percentage. The

@kellyhou2188 3 жыл бұрын

Thanks! I watched his speech already but still Enjoys your video.

@meetpratyush 3 жыл бұрын

At 16:00 fundamentally incorrect calculation; We need to consider averaging. If in 23 years, the returns are ~4x which means that we had 2 exponenting over 23 years' period. This implies CAGR of ~5-6%, which is not true for S&P500 for the duration 1997-2023.

@remcat3572 3 жыл бұрын

Jack Bogle... a legend and a saint.

@GarrettJohnson1986 3 жыл бұрын

Even knowing this it is good to have a reminder. So easy to see short term gains at the risk of long term profits. Stay the course!

@joeyzalman8254 3 жыл бұрын

thanks it was really clear!

@ezhilarasan5545 3 жыл бұрын

this s Gold mate...Thank u

@LastAirElement 3 жыл бұрын

Yes buy, because you can always dollar cost average when price drops.

@mundungo5586 2 жыл бұрын

And that's just the index return over the 23 years after Jack Bogle's speech.Which is impressive enough.It doesn't take into account the dividends that would have accumulated over the years that when reinvested would have produced a far higher total return.Even with a low yielding index like the S&P, compounded dividends really accelerate the returns.

@davidkayanan8976 3 жыл бұрын

16:23 Let's not forget expenses and taxes. But this is great content!

@TDubya811 3 жыл бұрын

The market can go sideways and down from really long periods of time. There have been several times in the past 150 years where it to 10 to 20 years for market to regain previous highs. Also Japan had a lost decade in the 90s after Huge QE and arguably still hasn't really recovered. Having said that I still think this Bull Run has a good set of legs in it good for a couple more years - so BUY BUY BUY!

@LA-fr7fx 2 жыл бұрын

Japan is an interesting situation/comparison.

@shep68 3 жыл бұрын

Whole heartedly agree with Bogle, Buffett and this video. With one addition to the philosophy...particularly when your pot of money has grown into a tidy sum, and you’re getting ever closer to retirement. Pay attention to the 200 day moving average. History has shown that if you sell out of equities when the index falls below the 200 day and buy back in when it rises back above again, you will have preserved more of your wealth. You limit yourself to a 14 or 15% hit rather than a 20-30+ % hit. This strictly applies to your existing pool of money. I am still a buyer all the way down picking up ever cheaper shares along the way. Once the 200 day MA is hit going up, go all in again with your positions. This strategy has worked all the way back to the great depression up to and including the big COVID sell off last March. This advice is for those trading in an IRA or work 401k type plan where there are no tax implications. You would likely not want to do this in a regular brokerage account as the capital gains might kill you.

@MrCiofani 3 жыл бұрын

Great video 😉👍

@miss.anastasiawolf 3 жыл бұрын

thanks mate, great timing for this :) what actually makes me worry is not the market fuss but the australian-chinese relations because is already starting to effect real estate and mining. If you could make a video about it, it would be awesome.

@Thurgor_Supreme 3 жыл бұрын

Time in Market > Market Timing

@Longtack55 3 жыл бұрын

Yeah that ensures that you lose big when you remain in the market with your $80 Citigroup stock in Jan 2018 and now $60

@Thurgor_Supreme 3 жыл бұрын

@@Longtack55 Sure I guess, if you're foolish enough to buy individual stocks

@Longtack55 3 жыл бұрын

@@Thurgor_Supreme Ha ha ha! I'm sorry for you mate. In the last year I had an 11-bagger and several 3-baggers, and ended up 100% in 12 months.

@TonyCook7 3 жыл бұрын

Simple answer. Yes. Keep putting money in as usual. Stop trying to time the market.

@bradwilliams4921 2 жыл бұрын

It would be nice to have some money to invest long term in index funds. Jack Bogle’s advice makes so much sense.

@bobwright8000 3 жыл бұрын

Great info. Stay the course. Thanks.

@AUstinnesc 11 ай бұрын

I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.

@AUstinnesc 11 ай бұрын

@@sheltonPston How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success

@AUstinnesc 11 ай бұрын

Glad i bumped into this i just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

@calmoceans6668 11 ай бұрын

@@sheltonPstonabsolute scammer. People in this thread don’t trust these truly bottom feeders referencing someone to help u invest your money. Take jacks advice invest in index funds why would u need one of these scammers to help u? The whole point of index is to keep fees down. Don’t trust these idiots in these threads, total scammers!!!! They will take your money

@calmoceans6668 11 ай бұрын

@@AUstinnescscammer

@SunofYork 2 ай бұрын

@@corrySleddProfessionals are invested in milking you. That is their business.. ie There is no need to kiss a hooker

@andrepinto7895 3 жыл бұрын

When people say that the stock market is expensive they need to contextualize it with alternative types of investment, are stocks expensive compared to real estate? are stocks expensive compared to minimal fixed-term deposits interest? are stocks expensive compared to minimal bond returns? are stocks expensive compared to 1 BTC > 50k USD? are stocks expensive compared to cash with >40% M1 created during the last year? we are seeing the results of expansionary monetary policy. it's not like people think the stock market is cheap, is just that they don't have anything better to do with their money.

@moneyhafimek 3 жыл бұрын

For a minute I thought I was gonna have to panic sell. Thanks for the encouragement

@InvestingwithKurt 3 жыл бұрын

Absolutely if you are in it for the long haul! As no one knows when the market will go up or down, the best strategy is to keep buying index funds.

@Verysimpleinvesting 3 жыл бұрын

Great video by the way and in around 2004 I had a chance to meet Jack. Great man. All my investments are in Vanguard .

@CGAZ66 3 жыл бұрын

I have seen people lose thousands on their work 401k in the past when the market crashed. I am almost at retirement age and switched my 401k to a more less risky option as this bubble may come crashing down and i do not have the time(age wise) to rebuild it up. I will play the market on the side and keep my hard earned 401k money .

@fishing-with-rob4868 3 жыл бұрын

Very smart. The market will crash sometime in the next 3 years. Happy to see people making smart decisions. Enjoy your retirement

@davidjames1684 3 жыл бұрын

I am in the same "boat". 7 years away from retirement, so I cash out daily to protect from any overnight losses.

@METALADIX 3 жыл бұрын

Provided that you picked decent stocks the only time you actually lose money is when you take it out.

@davidjames1684 3 жыл бұрын

@@METALADIX Not exactly true. An ETF that has a yearly average of 5.8% could have a negative year in there. If someone pulls out their money before that negative year (let's say immediately before), then how are they losing money?

@IndusrialProgrammer 3 жыл бұрын

the Dead have always the best yields :D. The catch is obvious, they are dead. We can go Long for 3 years but not for 50 :)

@gerry2345 3 жыл бұрын

I like this vid. Good insight.

@Allenbass7 3 жыл бұрын

Thanks for this video! I am on a self prescribed crash course of books and internet info and this was one of the more concise and useful/interesting things I've come across.

@tpplatfzft 3 жыл бұрын

Keep investing, bro!

@AHR_James 3 жыл бұрын

16:30 This always annoys me. If you're going to argue for DCA, at least give the returns of a DCA strategy rather than a one-off investment return.

@svenvanwier7196 3 жыл бұрын

I think he means that you show up to constantly keep putting money in...... For instance you might do a lump of a few K you saved up in the beginning and fill it up monthly with some hundreds. Since savings accounts don't really have interest rates... its better to just put that money to use. I don't arue for DCA here, but I also see a point where you might feel a bit scared about investing so that is a good reason to do it.. and get used to putting up montly investments.

@trentynbotello1028 3 жыл бұрын

Totally answered my question. Thank you for being so thorough!

@gerardn5455 2 жыл бұрын

If you have a lump sum to invest and you do not need to spend it, why not wait until the S&P returns to its long term average. If you compare 1997 to 2021 and you buy now, they seem to expect the S&P to hit 14000 in 23 years time.

@navd2442 3 жыл бұрын

Thanks for this video. Very insightful.

@semple888 3 жыл бұрын

I don't think the ASX200 is that over priced. Especially compared to say the s&p500 and NZX50 those are crazy, pretty much tripled in the last 10 years

@y-bones5906 3 жыл бұрын

Was looking a that today. Best tip

@zzzcocopepe 3 жыл бұрын

I bet part of it is because everybody is getting into investing now. So there's just a lot more people plugging money into the stock market regularly. And that's probably partly what's causing the stock market to be at an all-time high

@zacksnyder4082 3 жыл бұрын

No, they don't have enough to move anything. It has everything to do with the FED quantitative easing which they obviously can't do forever hence interest rates up to 1.35%

@DavidEVogel 3 жыл бұрын

everybody is getting into investing now. Everybody? Gallup finds 55% of Americans reporting that they own stock

@zzzcocopepe 3 жыл бұрын

@@DavidEVogel ok smart ass. Sorry I forgot to consult with you

@user-bw5ms8uz9c 3 жыл бұрын

Really adore this guy. Watching his videos in the gym and whatever I go just to get the most of KZfaq :) Thank you!

@malickiszymon 3 жыл бұрын

Nice! Jack is one of the most important investors all time. Could you make similar S&P’ calculation with aggregate inflation?

@KyleProhaska 3 жыл бұрын

What I feel like people forget, that might be good to clarify in future videos when you show the historical up and downs... is that you're buying more that entire time, so while it makes those dips painful, it also means the run ups are that much more powerful as well. I think people see the up and down across a horizontal axis and they think "what progress did you really make?" not realizing you own another piece at tons of segments in-between, not buying all in at once and then riding it out forever...

@trime33 3 жыл бұрын

Yeah 100% agree. you might lose 30% on the way down but if you buy more on the down trend the approx 10% uptrend can mean money back and profit at 11% or so.

@RyanProvan 3 жыл бұрын

Fantastic video as always! Market is certainly going insane currently, given we are talking about passive investing purchasing ETFs now is fine as the key is consistency.

@mogley71 3 жыл бұрын

Awesome channel 👍

@leechongyew8807 3 жыл бұрын

I have no issues with ETF passive investing. But one thing I'm worried about is the misconception that it is hard to find a good company. This is perpetuated again and again until people generally believe that they are too dumb to find great offers. Are we too dumb to find a good company? There should be some balance here.

@smartwalletandme9624 3 жыл бұрын

I like buying ETF from Vanguard VOO. It has done well for me.

@TheSmartLawyer 3 жыл бұрын

You cannot go wrong with a well diversified Vanguard account

@bblee2112 2 жыл бұрын

Spy, Voo, Qqq

@bt11 3 жыл бұрын

First time I’ve heard “it’s better than a poke in the eye”, that absolutely cracked me up. Great advice by the way!

@cpleemusic6680 3 жыл бұрын

I always thought that was a Black Country saying🤣 heard it all the time growing up. Usually 'better than a poke in the eye with a sharp stick' 🤣

@ForNoOne1 3 жыл бұрын

Dick Van Dyke uses it in Mary Poppins when describing his chalk drawing

@GianfrancoYosida 3 жыл бұрын

Great material you offer. I’ve just discovered this channel and will subscribe to it. Thanks 💪🏽

@alexschwartz1483 2 жыл бұрын

Watching this in September of 2021 and we are still hitting all time highs...money in before the crash is still better than no money invested ever

@JustAName-it5qp 3 жыл бұрын

Yes my new low is wherever "high" I bought it at. Better late than never. If it dips I buy more

@pursuit4942 3 жыл бұрын

Solid logic, though if we are still following our fundamental strategies that likely does mean in markets like we are seeing now, the number of places to put that money should be fewer. Yes you want to keep investing in 2008, but if you do your proper research, maybe the housing market wasn't the place to put it :p Which makes me think investing your money into the average market now is fine, but I would personally avoid all the incredibly inflated new tech stocks. Put your money somewhere, but not just anywhere :)

@rivahkillah 3 жыл бұрын

And not everywhere.

@aienbalosaienbalos4186 3 жыл бұрын

Wrinkly brain

@znome8500 3 жыл бұрын

Market crash, bear market , all time high bla blah blah ignore all that bullshit. Find a good company, with a reasonable dividend payout , buy and hold.

@kenneho 3 жыл бұрын

Since index fubd was invented, the interest rate has gone mostly down. When that turn, it's not given that index funds is there way to go

@crimmeyd00d47 3 жыл бұрын

Exactly! It's all been debt fueled with gradually decreasing rates. There's no where to hide and nowhere to turn to now. Central banks will buy it all to stop it from collapsing.

@GiladOphir 3 жыл бұрын

Hi, can you send a link to the course you mention in the video: 'Stock Market investing...' thanks.

@MoEMoE-oo9gw 3 жыл бұрын

Always buy high and sell low.

@MrChilo89 3 жыл бұрын

Wtf

@erikb4407 3 жыл бұрын

@@MrChilo89 buying high and selling low is about sending a message. The message is I've got no clue about investing.

@SageFinance 3 жыл бұрын

I’ll just keep dollar cost averaging every week as normal - if there’s a dip I’ll start buying in more heavily. Keep it simple 🙂

@ffnightranger 3 жыл бұрын

I do my best to DCA, but then when I get excited I just remind myself lump sum is better :P Edit: Better as in, more beneficial more of the time. It isn't ALWAYS better.

@SageFinance 3 жыл бұрын

@@ffnightranger I went lump sum into the etf FANG in April last year and am very happy 😃 Got to take advantage of big market drops!

@ffnightranger 3 жыл бұрын

@@SageFinance For sure! No matter what I do, I still have the 403b, so I am always DCA to a degree. I just like to have fun managing the Roth IRA (No selling, just buying).

@SageFinance 3 жыл бұрын

@@ffnightranger yep retirement accounts are the best way to invest with instant tax benefits! My contributions are weekly 😃

@SageFinance 3 жыл бұрын

@NihlusGreen I’ve found sitting around waiting for the market to drop is worse because you miss out on the opportunity going up - Time in the markets is the way to go 🙂

@ctyreman11 3 жыл бұрын

Don't get passive investing and DCA mixed up. Lump sum into a passive fund beats DCA most of the time.

@TripleJ69 2 жыл бұрын

This is very sage advice from one of the greatest investors of all time. I'll keep this in mind the rest of my investing journey.

@Matt-ny1ue 3 жыл бұрын

needed to hear this right now, the thought of abandoning the DCA approach has definitely been weighing on my mind during these times of high cost but im going to stick to the strategy!

@jwalk4491 3 жыл бұрын

Thank you for the video. I made some errors in my lifetime and I have emphasized these errors to my kids. My only hope is they will learn from my mistakes.

@KENTUCKY-MAMA 2 жыл бұрын

Every parents motto.

@MrBalas3 3 жыл бұрын

This is great advice if you are under approximately 35 yr. The reason I say that is because you hear so much about once you are in your 60’s you are less likely to be completely(meaning 100%) in the market. So sure passive long-term investing is great, but really works absolute best if you start young.

@noelleblanc4473 3 жыл бұрын

Great video. I'm glad because after studying all by myself on the web many hours a day for 3 months, I discovered etfs and Jack Bogel. To me he is the one who democratised investing and I think he (Vanguard) deserves our business.

@jdengsky 3 жыл бұрын

really? i am surprised. i have known this for a long while. but there are other strategy that perform better for a while.

@rc2276 3 жыл бұрын

I like that you use basic valuation metrics. Yes jack bogle helped bring low cost funds/etfs to the masses slashed costs and made investing non complicated. Etfs have outperformed 95% of fund managers in the last 15 years. The market is crazy expensive I will wait for larger retracements and bulk buy in at discounts.

@RyanHarrisonYT 3 жыл бұрын

Jack Bogle, underrated investor IMO. Totally agree, he doesn't get the same recognition as someone like a Warren Buffet or a Charlie Munger. Great video man!

@thelist786 3 жыл бұрын

+1.2.5.6.4.9.4.8.5.5.5

@jamesmagoo3190 3 жыл бұрын

Probably because Jack got rich by inventing the funds not from investing in the funds themselves

@betterhomesnc2437 3 жыл бұрын

Munger and Buffet also outperformed him consistently, so yes they deserve more recognition.

@mrdumpling 3 жыл бұрын

You address questions I have before I have them!

@Michieldering 3 жыл бұрын

Thank you! You explained so well. I feel convinced now to ‘stay the course’ -which I set since August 2020 and has given me a 25% revenu. Your contribution is much more interesting than all the predicted financial crisis by the ‘experts’ here on KZfaq. But staying the course should not keep us from beeing flexible. Keep learning and open to change at all times.