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Investing Guru Jack Bogle's Advice: 'Just Stand There'

(AP/Mark Lennihan)

By    |   Thursday, 12 January 2017 09:31 AM

Investment guru Jack Bogle says if you are already in the market, stop worrying on a daily basis and don't tinker with your bets.

“My phrase is ‘Don’t do something, just stand there,’” he told CNNMoney.

Bogle explained he does keep track of daily financial-market movements. But he says he doesn't react emotionally to every sway the market makes.

He said he will continue to keep his portfolio split roughly 50-50 between stock index funds and bond index funds.

“I don’t change it, I don’t look at it every day,” said the founder of mutual-fund giant The Vanguard Group.

It may be hard for your average investor to resist the temptation to pop open the hood of their investments, and tinker with the inner workings.

And many investment advisers have warned of a bumpy ride ahead, which could stoke emotions and the desire to fix things before they are broken.

To be sure, exchange-traded funds that target value stocks are raking in cash. But the people buying those portfolios should buckle their seatbelts, because there could be some turbulence ahead, Bloomberg reported.

Investors have poured more money into smart beta value funds than any other category for at least 11 straight weeks, data compiled by Bloomberg show. In last week’s holiday-shortened four trading sessions, value ETFs, which track stocks priced at discounts to things like earnings or assets, absorbed $1.1 billion, nearly triple the prior week.

But everyone rejoicing the return of value also is facing a frightening reality: Lately the results haven’t been keeping up with the enthusiasm. Last week, the market-neutral, or long-short, version of the value category, also known as a factor, posted its worst two-day return in more than five years, according to Bloomberg portfolio analytics.

However, Newsmax Finance Insider Hans Parisis cautions savvy investors to prepare for much more volatility as President-elect Donald Trump prepares to take over the Oval Office.

"The main message investors could infer from yesterday’s first formal press conference since his election is that 'Trump remains Trump,'" Parisis wrote.

"The content of the press conference was not especially insightful for investors as any stimulus talk was skipped, but the style of the conference was surely different."


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Investment guru Jack Bogle says if you are already in the market, stop worrying on a daily basis and don't tinker with your bets.
jack bogle, invest, stand, market
Thursday, 12 January 2017 09:31 AM
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