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  #61  
Old 01-15-2018, 11:30 AM
Chicks Chicks is offline
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Even with an indexed S&P 500 fund you're speculating too.
Which is why you use asset allocation to balance risk and reward, moving toward lower risk as you grow older. Lots of great index funds from Vanguard that make it easy to do this, and, over time, will always outperform the speculators.
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  #62  
Old 01-15-2018, 06:34 PM
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Which is why you use asset allocation to balance risk and reward, moving toward lower risk as you grow older. Lots of great index funds from Vanguard that make it easy to do this, and, over time, will always outperform the speculators.
Pretty stiff loads in some of those lifestyle mutual funds, though.
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  #63  
Old 01-17-2018, 12:52 PM
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Which is why you use asset allocation to balance risk and reward, moving toward lower risk as you grow older. Lots of great index funds from Vanguard that make it easy to do this, and, over time, will always outperform the speculators.
You sound like a Vanguard financial advisor/consultant.
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  #64  
Old 01-17-2018, 01:06 PM
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You sound like a Vanguard financial advisor/consultant.
Well, unlike most investment firms, as an investor in their funds, you are an owner of the company, so in a way you’re correct. Wish I could move my 401K there from Fidelity, as well; my Vanguard returns have substantially outperformed the 401K, with its higher fees and limited choices.
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  #65  
Old 01-17-2018, 06:41 PM
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The skewering continues. Apple announces expansion, new jobs and repatriation of billions of dollars while also paying 38 billion in taxes for the privilege of repatriating those billions. Why? The new tax law.

https://www.cnbc.com/2018/01/17/appl...r-5-years.html

Yeah, it's just anecdotal.
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  #66  
Old 01-17-2018, 06:56 PM
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Well, unlike most investment firms, as an investor in their funds, you are an owner of the company, so in a way you’re correct. Wish I could move my 401K there from Fidelity, as well; my Vanguard returns have substantially outperformed the 401K, with its higher fees and limited choices.
No thanks, I'll stick with my current investment mix/strategy.
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  #67  
Old 01-17-2018, 07:02 PM
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The skewering continues. Apple announces expansion, new jobs and repatriation of billions of dollars while also paying 38 billion in taxes for the privilege of repatriating those billions. Why? The new tax law.

https://www.cnbc.com/2018/01/17/appl...r-5-years.html

Yeah, it's just anecdotal.
And as the article clearly states, president-elect Trump said he'd get Apple to do this.
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  #68  
Old 01-18-2018, 12:53 AM
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Muted returns for stocks expected over next decade. In line with Krugman’s predictions, from someone who can hardly be called a “lefty”, lol. The party’s ending, time to switch to a boring 60/40 portfolio.

https://www.bloomberg.com/news/artic...ter-long-rally
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  #69  
Old 01-18-2018, 01:04 AM
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No thanks, I'll stick with my current investment mix/strategy.
Kick-a-poo joy juice and pork belly futures?
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  #70  
Old 01-18-2018, 07:42 AM
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Muted returns for stocks expected over next decade. In line with Krugman’s predictions, from someone who can hardly be called a “lefty”, lol. The party’s ending, time to switch to a boring 60/40 portfolio.

https://www.bloomberg.com/news/artic...ter-long-rally
You do what you think is best for you. If you're closer to retirement than other folks, or a lower personal risk tolerance, then yeah, a 60/40 or even a 50/50 portfolio might make more sense. If you've got a longer time horizon to retirement, or a higher risk tolerance, a 60/40 portfolio makes no sense.

As to the long term outlook for stocks, yeah, the predictions for less stratospheric returns than what happened in 2017 and early 2018 makes sense. Last year and this year, if plotted on a growth chart that starts in 2000 and rolls out to 2050, will probably look like bumps on an upward bending curve. There may also be some dips, and I wouldn't be surprised if there was a pull back later this year or next. According to this article in Morningstar:

With stocks posting another stellar year last year--and with valuations that could hardly be described as cheap--most serious experts are even more circumspect in their long-range return expectations today.

True, economic fundamentals are fine: The economy is solid, unemployment remains low, and corporate earnings growth has been robust. But much of that good news is arguably already priced into stocks' valuations today.


So, no, "the party" isn't over, but it might be winding down to something that looks more like a the usual backyard barbecue and less like a New Year's Eve bash in Times Square. Therefore, there's no need to abandon a long term strategy or over-react to what some think might/might not be happening over the next several years.
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