Comments on: John Bogle responds to “Ask Jack” questions http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/ Thoughts from the Founder of the Vanguard Group of Investment Companies Mon, 16 Jan 2012 22:04:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Quick Primer Question For New Investors » Andrew Hallam http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/comment-page-1/#comment-485 Quick Primer Question For New Investors » Andrew Hallam Wed, 02 Nov 2011 04:02:14 +0000 http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/#comment-485 [...] index If I was going to add fresh money to my account today, which index would I buy, and why?  Let’s assume that I want the following portfolio allocation: 40% Bond Index 30% U.S. Stock Index 3...his allocation 3 months ago, and that I’m ready to make a new deposit with fresh money.  In other [...] [...] index If I was going to add fresh money to my account today, which index would I buy, and why?  Let’s assume that I want the following portfolio allocation: 40% Bond Index 30% U.S. Stock Index 3…his allocation 3 months ago, and that I’m ready to make a new deposit with fresh money.  In other [...]

]]> By: Financial Predictions That Never Look Silly » Andrew Hallam http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/comment-page-1/#comment-484 Financial Predictions That Never Look Silly » Andrew Hallam Tue, 04 Oct 2011 13:03:58 +0000 http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/#comment-484 [...] the indexed account will be far more tax efficient as well.Not long ago, a man I worked with suggested that I should be careful about giving financial advice. ...ver the years, and despite the existence of entire careers based on that sort of endeavour, study [...] [...] the indexed account will be far more tax efficient as well.Not long ago, a man I worked with suggested that I should be careful about giving financial advice. …ver the years, and despite the existence of entire careers based on that sort of endeavour, study [...]

]]> By: Did My Friend’s Investment Advisor Add Value? » Andrew Hallam http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/comment-page-1/#comment-483 Did My Friend’s Investment Advisor Add Value? » Andrew Hallam Tue, 04 Oct 2011 12:45:47 +0000 http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/#comment-483 [...]  The best thing about keeping a financial blog is the interactions I’m able to have with informed r...is investment account statements, and he asked me to look through them. With interest, I went through his account, which was quite different to many of the accounts I’ve seen in the past. He and his wife are in their late 30s. [...] [...]  The best thing about keeping a financial blog is the interactions I’m able to have with informed r…is investment account statements, and he asked me to look through them. With interest, I went through his account, which was quite different to many of the accounts I’ve seen in the past. He and his wife are in their late 30s. [...]

]]> By: bteale http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/comment-page-1/#comment-106 bteale Fri, 09 Nov 2007 00:12:00 +0000 http://johncbogle.com/wordpress/2007/06/15/john-bogle-responds-to-ask-jack-questions-2/#comment-106 Dear Jack I have just read your May 2006 Money Show Key note speech which is wonderfully clear and offers a great way of managing client expectations. I have read elsewhere that nominal earnings have grown at about 6% for many decades. However, the current IBES data indicates expectations of twice this figure! Can this be justified in anyway? Could it be that in a globalized world the long term correlation between US GDP and earnings is now breaking down and we should expect the growth of international company’s earnings to be linked more to world GDP – with an obvious boost from emerging markets? Or is it just blind optimism and extrapolation of recent trends? I also note your warning about risk and the 'pleasant sensation of more saftey when and if stocks take a tumble'. Given low risk premiums, does it make sense to advise clients to be more conservative than normal and maintain liquidity until there is more value in the market, or is this simly falling into the market timing trap? I would be interested to know what you mean by protection - allocation to fixed income or buying some form of insurance via options? Best regads, Benjamin Dear Jack

I have just read your May 2006 Money Show Key note speech which is wonderfully clear and offers a great way of managing client expectations.

I have read elsewhere that nominal earnings have grown at about 6% for many decades. However, the current IBES data indicates expectations of twice this figure! Can this be justified in anyway? Could it be that in a globalized world the long term correlation between US GDP and earnings is now breaking down and we should expect the growth of international company’s earnings to be linked more to world GDP – with an obvious boost from emerging markets? Or is it just blind optimism and extrapolation of recent trends?

I also note your warning about risk and the ‘pleasant sensation of more saftey when and if stocks take a tumble’. Given low risk premiums, does it make sense to advise clients to be more conservative than normal and maintain liquidity until there is more value in the market, or is this simly falling into the market timing trap? I would be interested to know what you mean by protection – allocation to fixed income or buying some form of insurance via options?

Best regads,
Benjamin

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