The market is up and everyone is excited! Hearing the old advice of “hang in there” or “ride it out.”
But why is the market up? It’s election year, so anything can happen. What happens after November 6?
My crystal ball is broken so I look to the guru’s for guidance.
In Money Watch this week, they talked about John Bogle and his last book.
(MoneyWatch) by Allan Roth “The Clash of the Cultures: Investment vs. Speculation” is investing pioneer John C. Bogle’s tenth and last book. It is an enjoyable read that ends with 10 lessons for investors that, while simple, are deeply valuable to the general public. I even developed my own scorecard to keep track of how the clash that Bogle, founder of mutual fund giant The Vanguard Group, alludes to is developing over time.”
Here is the short version of his 10 lessons. If you want the whole article, please email me.
1-What is hot today isn’t likely to be hot tomorrow.
2-Time is your friend, impulse your enemy. Compound Interest
3-Greedy or scared, stick to your asset allocation.
4-Have realistic expectations.
5-Buy the whole market-index
6-Beating the stock market and the casino are both zero-sum games, before costs. You get what you don’t pay for.
7-There’s no escaping risk. A money market may be the ultimate risk because it will likely lag inflation.
8-What worked in the recent past is not likely to work going forward.
9-Hedgehog beats the fox. Foxes represent the financial institutions that charge far too much for their artful, complicated advice. The hedgehog, when threatened, simply curls up into an impregnable spiny ball, represents the index fund with it “price-less” concept.
10-The secret to investing is there is no secret.
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