Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-03-2015, 06:18 PM   #21
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 3,849
Quote:
Originally Posted by Spanky View Post
it can lead to market crashes also.
Buying (rebalancing) opportunity.

Quote:
Originally Posted by nash031 View Post
But investors benefit from the existence of frequent traders...
+1
__________________

__________________
sengsational is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-03-2015, 10:32 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by Spanky View Post
I have zero portion for any kind of trading. There are so many other things to do for fun. Trading (or gambling) is not one of them.
Clearly everyone agrees with you. That is why there is hardly any trading anymore.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 08-04-2015, 12:14 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,449
Let's pass a law banning stock trading. When you buy stocks of a company, it will be for life. Your life or the company life, whichever ends first.

So, if you happen to buy a hot stock like Apple, how do you cash out if you cannot sell? No, you don't. What if you think the company is about to go bankrupt? So, you save your skin at the expense of the dumb guy who buys the lousy stock from you? Nope, not allowed. You own it forever, for better or for worse.

OK, maybe we will let you sell, but as a deterrence, let's tax capital gain at 50%. That will teach you. You cry out "What capital gain, I am losing money". Well, we will just tax 25% of the proceed, if you have no gain.

That will slow traders down.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 08-04-2015, 09:24 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,384
Quote:
Originally Posted by Spanky View Post
Not difficult at all! I have zero portion for any kind of trading. There are so many other things to do for fun. Trading (or gambling) is not one of them.

Hmm, I need to go see a shrink, as gambling (lessor degree trading) is by far my most favorite thing to do for fun. After 40 years of it, you think it would have gotten old. But it is just as fun today as it has ever been.


Sent from my iPad using Tapatalk
__________________
Mulligan is online now   Reply With Quote
Old 08-04-2015, 10:41 AM   #25
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Quote:
Originally Posted by Pecan518 View Post
Hello All. I'm a long time lurker and this is my first message.

First, let me say I agree with the sentiment of John Bogle's statement. But I do want to point out one very important benefit additional trading has over and above the initial capital placed with firms. The trading allows investors to earn higher returns (than say a bank account) and still access their money later when they want to. Imagine if the only trading was with firms (IPOs, SECs, and share repurchases) (i.e., when firms raise capital or return capital). In that case when I get paid and want to invest my money, I can only buy stock in a firm if it is selling new shares right at that moment. In addition, I can only get money back from my investment if that firm decides to pay dividends or repurchases shares.

I do think John Bogle is correct in the idea that Wall Street makes lots of money from trading and wants to encourage investors to trade for their own benefit. But it is also true investors do get some benefit from having a liquid market so they can invest and then access their investment at a time of their choosing. Besides the 1% or trading that is used to raise capital, I'm not sure how much more is "good" trading vs. churning. It might be just another 1%, but it is something and without this function of the markets, I think many of us would have a hard time retiring early.
Well said.
__________________

__________________
imoldernu is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
John Bogle's book, "Enough," NPR Radio Interview CuppaJoe FIRE and Money 1 11-02-2008 12:49 PM
John Bogle interview; age 53 = smarter investors Bestwifeever FIRE and Money 10 05-24-2008 11:18 AM
John Bogle to be interviewed by Bill Moyers kevink FIRE and Money 17 10-03-2007 10:47 AM
John Bogle on Bill Moyers maxer Other topics 1 09-29-2007 12:57 PM
John Bogle On Managers Income yakers FIRE and Money 6 06-29-2007 10:18 AM

 

 
All times are GMT -6. The time now is 09:21 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.