Comments on: What’s Ahead for Stocks and Bonds – And How to Earn Your Fair Share http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/ Thoughts from the Founder of the Vanguard Group of Investment Companies Mon, 20 Feb 2012 02:07:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: GORDON http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/comment-page-1/#comment-29 GORDON Tue, 13 Jun 2006 16:47:46 +0000 http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/#comment-29 Happy birthday Jack, Missed your speech, was wandering around the floor of the show, but just finished reading it for the second time. I hope you keep posting to the blog. I think that it will be an excellent method of communicating. Gordon Eade - Lake Havasu City, Arizona Happy birthday Jack,
Missed your speech, was wandering around the floor of the show, but just finished reading it for the second time.

I hope you keep posting to the blog. I think that it will be an excellent method of communicating.

Gordon Eade – Lake Havasu City, Arizona

]]> By: John B. http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/comment-page-1/#comment-23 John B. Tue, 16 May 2006 17:16:10 +0000 http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/#comment-23 Mr. Bogle, Welcome to the world of blogs. As the godfather of investing for the average investor, you of course will be added to my must read. John, Toledo, Ohio Mr. Bogle,

Welcome to the world of blogs. As the godfather of investing for the average investor, you of course will be added to my must read.

John, Toledo, Ohio

]]> By: Subadvisor http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/comment-page-1/#comment-22 Subadvisor Tue, 16 May 2006 16:50:24 +0000 http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/#comment-22 Congratulations on the blog - I'll add it to my list of "must reads"! Congratulations on the blog – I’ll add it to my list of “must reads”!

]]> By: johndcraig http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/comment-page-1/#comment-21 johndcraig Tue, 16 May 2006 16:17:23 +0000 http://johncbogle.com/wordpress/2006/05/15/whats-ahead-for-stocks-and-bonds-and-how-to-earn-your-fair-share/#comment-21 Here is a post I made to the Diehards forum. What do you think? Stay the Course? Efficient markets? What would Jack say? I’ve always been a fan of Jack Bogle. I’ve always thought of him as a realist, different than many on this forum who seem dogmatic at times. Jack recently spoke in LV, here is his closing statement: "So do your best to minimize your investment expenses and your own emotions, rely on your own common sense, be very careful, and then stay the course." Sound like diehard dogma about staying the course? What about his suggestion to rely on common sense and be very careful? Why should this be relevant in the context of diehard dogma? Here’s another quote about common sense: "To each his own in analyzing the extent of such risks, but with problems looming in our federal deficits, mortgage financing, global instability, the war in the Middle East, and terrorism (and perhaps even avian flu), a little extra risk aversion seems little more than common sense." Apparently Jack doesn’t think all of this is already factored into the market, as EMH would suggest. And here’s a summary quote: "Conclusion: with (A) subdued returns in prospect: (B) low equity risk premiums; (C) a time of substantial risk; with (D) bond income dwarfing stock income (5 3/4% vs. 2 percent); and (E) the pleasant sensation of more safety when, and if, stocks take a tumble, carefully consider whether your own portfolio balance provides, not only adequate opportunity, but adequate protection." Note that each of the things he mentions involve the situation as it exists today, not 5 years ago or 10 years ago. So is he suggesting that we should be reevaluating our asset allocations in light of all of these recent developments? Of course he is. That’s what Jack Bogle (and common sense) is all about. John Here is a post I made to the Diehards forum. What do you think?

Stay the Course? Efficient markets? What would Jack say?

I’ve always been a fan of Jack Bogle. I’ve always thought of him as a realist, different than many on this forum who seem dogmatic at times.

Jack recently spoke in LV, here is his closing statement:

“So do your best to minimize your investment expenses and your own emotions, rely on your own common sense, be very careful, and then stay the course.”

Sound like diehard dogma about staying the course? What about his suggestion to rely on common sense and be very careful? Why should this be relevant in the context of diehard dogma?

Here’s another quote about common sense:

“To each his own in analyzing the extent of such risks, but with problems looming in our federal deficits, mortgage financing, global instability, the war in the Middle East, and terrorism (and perhaps even avian flu), a little extra risk aversion seems little more than common sense.”

Apparently Jack doesn’t think all of this is already factored into the market, as EMH would suggest.

And here’s a summary quote:

“Conclusion: with (A) subdued returns in prospect: (B) low equity risk premiums; (C) a time of substantial risk; with (D) bond income dwarfing stock income (5 3/4% vs. 2 percent); and (E) the pleasant sensation of more safety when, and if, stocks take a tumble, carefully consider whether your own portfolio balance provides, not only adequate opportunity, but adequate protection.”

Note that each of the things he mentions involve the situation as it exists today, not 5 years ago or 10 years ago. So is he suggesting that we should be reevaluating our asset allocations in light of all of these recent developments? Of course he is. That’s what Jack Bogle (and common sense) is all about.

John

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