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

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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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.

[@luciali4513]

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]

It’s all true

[@anonymousinvestor9593]

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

[@davidjames1684]

That method has some flaws.

[@ballaking1000]

@@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]

Thank you for summarizing the points

[@dan_mclean]

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]

how much is the dividend for S&P?

[@Simon-vo7gi]

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

[@2011blueman]

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

[@SM-xy3ff]

Do we need to take inflation into account?

[@bossman4401]

Inflation is at least half of that so yes

[@mallardbeacon6502]

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

[@dolbysurround2269]

Thanks man 👍

[@Rogerisateur100AD]

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

[@jakebosworth6253]

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]

thank you 2x speed is not enough

[@jreamscape]

Bear markets can last years let’s not forget inflation

[@WeLoveValue]

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 :)

[@burrussroger7352]

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]

@@dannywalters958 This is looking like a plug.

[@Bobbysmith54999]

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

[@sarahmulhollen3684]

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]

This is blatantly a coordinated sales pitch.

[@generalqwer]

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

[@christophdenner8878]

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

[@slaphappie218]

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

[@audigex]

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]

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

[@XShollaj]

Jack Bogle was a great man and a legendary investor!

[@linos1987]

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

[@BCV2023]

Time in the market beats timing the market! ⏰

[@elinsd]

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

[@Repsforjesus67]

@@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]

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

[@Longtack55]

and stock picking by tedious research beats that.

[@Repsforjesus67]

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

[@poopyjoe4016]

time is your friend, if you have em

[@AISkillBoost]

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

[@MartinSurillo]

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.

[@2011blueman]

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

[@ThomasFerrugia]

Noticed that too. Thanks for calculating!

[@giovannip8600]

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

[@haeimlee5584]

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

[@RWAfuture]

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

[@captaindip6970]

?

[@shodotashirov]

Is it that bad?

[@dean2663]

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.

[@MoneywithDan]

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!

[@criii4950]

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

[@LA-fr7fx]

This was a very good video!

[@plastelina_ytb]

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

[@meetpratyush]

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.

[@rudolphbattle8238]

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

[@sapinva]

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

[@QUINTUSMAXIMUS]

@@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.

[@thebookwasbetter3650]

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

[@harsha7029]

"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]

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

[@Jack-xk3qp]

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

[@vidz953]

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

[@gsards]

How does compound interest work in stocks?

[@lessonsbeyond7773]

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.

[@MrGmac2011]

"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]

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]

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]

@@parkerbohnn you trolling right?

[@parkerbohnn]

@@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]

@@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.

[@spacecowboy2483]

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.

[@sanguinj]

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

[@kiddobix]

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

[@g30rg3-c5]

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.

[@GiladOphir]

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

[@kellyhou2188]

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

[@BullInvestor]

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]

+1.2.5.6.4.9.4.8.5.5.5

[@WeLoveValue]

agreed! If you're a passive investor just DCA

[@tpplatfzft]

DCA needs discipline.

[@BullInvestor]

@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]

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

[@ippolito3166]

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

[@CameronStockton1]

Subscribed, great channel and content!

[@davidkayanan8976]

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

[@drewhennek3717]

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]

This is click bait content lol

[@astrahl]

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]

how do you determine intrinsic value?

[@astrahl]

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

[@rateme6166]

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

[@astrahl]

@@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]

@@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

[@trentynbotello1028]

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

[@gerardn5455]

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.

[@miss.anastasiawolf]

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.

[@remcat3572]

Jack Bogle... a legend and a saint.

[@AHR_James]

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]

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.

[@joeyzalman8254]

thanks it was really clear!

[@GarrettJohnson1986]

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!

[@noelstout3056]

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]

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]

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

[@noelstout3056]

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

[@jamesowen9384]

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]

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

[@thepauloftroy]

8:43 Abe Lincoln blinks in agreement

[@rockford717]

I am amazed why this is not the top liked comment

[@rockford717]

And it is super creepy... remind me of the Predator

[@jo8422]

Spooki

[@KaamilNaicker]

@charles wheelock This. This is gold.

[@realworldwellness3658]

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.

[@bobwright8000]

Great info. Stay the course. Thanks.

[@TDubya811]

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]

Japan is an interesting situation/comparison.

[@jacobklein8156]

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

[@user-qm5eg3fg8c]

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]

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]

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

[@lukewarmape603]

@@ctyreman11 literally the opposite but ok

[@TheCuratorIsHere]

Unless you are Japan

[@navd2442]

Thanks for this video. Very insightful.

[@moneyhafimek]

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

[@corcoranmagriproperties]

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

[@godtrader6102]

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]

@@godtrader6102 lol

[@semple888]

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]

Was looking a that today. Best tip

[@malickiszymon]

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

[@GianfrancoYosida]

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

[@ezhilarasan5545]

this s Gold mate...Thank u

[@pursuit4942]

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]

And not everywhere.

[@aienbalosaienbalos4186]

Wrinkly brain

[@znome8500]

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.

[@Allenbass7]

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.

[@MrCiofani]

Great video 😉👍

[@fhowland]

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]

When will that end?

[@fhowland]

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

[@Thurgor_Supreme]

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]

Trump tax cuts as well.

[@colin1818]

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

[@LastAirElement]

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

[@user-bw5ms8uz9c]

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

[@gerry2345]

I like this vid. Good insight.

[@bt11]

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]

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]

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

[@tpplatfzft]

Keep investing, bro!

[@bradwilliams4921]

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

[@tjmhanegraaf]

@12:00 You bleeped out 'KZbin Channels' didn't ya?

[@jwalk4491]

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]

Every parents motto.

[@Matt-wf7ry]

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

[@AussieMoneyMan]

Correct.

[@nonamed56]

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]

@@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]

@@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]

@@Alumnikiid lol

[@kenneho]

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]

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.

[@SirTilley]

Can anyone explain the difference between an ETF and an Index Fund? I still don't get it lol

[@TonyCook7]

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

[@KyleProhaska]

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]

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.

[@mogley71]

Awesome channel 👍

[@mrdumpling]

You address questions I have before I have them!

[@shep68]

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.

[@simonbagel]

I was waiting for you to address Michael Burry's relatively recent comments on index funds and ETFs.

[@bolt5828]

Very interesting, considering that a lot of money is tied up in indexes now

[@harjinderthind]

Good video and great explanation of Jack’s thoughts. But your example in the end is not convincing. $10000 in 1997 grows only to $40000......Are we missing something....what about dividend reinvesting and power of compound interest?

[@JosephDickson]

The hardest part for me with index investing is narrowing down my focus to say a half dozen choice. Anything more and it's an opportunity cost. Should I add more to VOO at the loss of not adding that money to VB or VO etc.

[@smartwalletandme9624]

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

[@TheSmartLawyer]

You cannot go wrong with a well diversified Vanguard account

[@bblee2112]

Spy, Voo, Qqq

[@andrepinto7895]

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.

[@djohnson-ku4cl]

Great video! Your description is great. Warren buffet has a great video on this regarding his first stock purchase, which talks about this.

[@Altaranalt]

Very clear explanation, thank you =)

[@RyanProvan]

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.

[@doragary3717]

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

[@leechongyew8807]

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.

[@marlonhorner2476]

Does anyone know the name of his book that jack bogle mentioned in his interview?

[@brucewood4384]

Thanks for the review +1>>8>>5>>8>>30>>6>>3>>0>>6>> t>t>a>p>p>>

[@Thurgor_Supreme]

Time in Market > Market Timing

[@Longtack55]

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]

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

[@Longtack55]

@@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.

[@JustAName-it5qp]

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

[@k.h.6991]

Where is the link to the original video?

[@trevorjones6289]

Should I sell out of my vanguard etf’s I got 5 months ago. Sell high? And buy back when the market corrects?

[@thedustcart]

No. Just keep investing whatever you are comfortable with at regular intervals.....Dollar/Pound Cost Averaging

[@DirtRoadGarage]

Also you'll pay short term capitol gains tax which is much higher than holding long term

[@Verysimpleinvesting]

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

[@Matt-ny1ue]

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!

[@LuC1800]

Thank you

[@InvestingwithKurt]

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.

[@tgasambaclub]

Interesting, but the question is: Does 40k USD worth more than the initial 10k after 20y and can you buy the same things that you could with the initial 10k at the time?

[@RonaldKragnes]

If in 1997 I purchased an item for $1 then in 2021 that same item would cost $1.61 If in 1997 I purchased an item for $10K then in 2021 that same item would cost $16,125.30 $10K invested in Jan 1997 in the Vanguard 500 Index (VINFX) would be worth $76,966 in 2021. $35 per month from 1997 to 2021 in the Vanguard 500 Index (VINFX) would be worth $35,811. $35 x 288 months = $10,080 invested

[@luka3174]

That is called inflation. Inflation typically grows at around 2% a year, so if your getting returns of 8% your obviously ahead

[@DavidEVogel]

Does 40k USD worth more than the initial 10k after 20y Sure hope so. can you buy the same things that you could with the initial 10k at the time? Sorry don't understand the question?

[@MoEMoE-oo9gw]

Always buy high and sell low.

[@MrChilo89]

Wtf

[@erikb4407]

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

[@Michieldering]

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 KZbin. But staying the course should not keep us from beeing flexible. Keep learning and open to change at all times.

[@TripleJ69]

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.