Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Jeff Nabers & Index Investing
Old 06-18-2008, 06:56 AM   #1
Confused about dryer sheets
 
Join Date: May 2008
Posts: 5
Jeff Nabers & Index Investing

I'm a bit new to the market and to investing, but have been quite taken by the "unbeatability" of index fund investing. Blogger Jeff Nabers recently posted about downsides to index fund investing, and I don't have the knowledge to critically analyze his points. (It seems more like he is posting about the downsides to equities markets in general.)

Is there someone on these boards who can respond to his claims?

Thanks!
__________________

__________________
JayNYC 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 06-18-2008, 08:32 AM   #2
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
(FAQ archive): Invididual Stocks vs. Funds/Active Funds vs. Passive Funds

without looking at the blog, here is a list of some older threads on index investing...
__________________

__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Old 06-18-2008, 08:36 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by JayNYC View Post
I'm a bit new to the market and to investing, but have been quite taken by the "unbeatability" of index fund investing. Blogger Jeff Nabers recently posted about downsides to index fund investing, and I don't have the knowledge to critically analyze his points. (It seems more like he is posting about the downsides to equities markets in general.)

Is there someone on these boards who can respond to his claims?

Thanks!
This website is just a sales document for his services. Do your homework- the resources in Maddy's link above should help-and stay away from crackpot stuff.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Old 06-18-2008, 08:38 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Well, everything else in the article aside, I tend to be leery about anyone who ends an article with a call to action to contact their company so they can save you from 'x'.

Pick up the Bogleheads Guide to Investing and read through it.

As for his part on inflation... well, without rehashing an entire thread about Shadowstats, the gist of my take on it is that the only inflation number you need to be worried about is your personal rate of inflation and you need to incorporate that and your risk tolerance with regard to investments in your asset allocation.
__________________
Marquette is offline   Reply With Quote
Old 06-18-2008, 09:36 AM   #5
Full time employment: Posting here.
CitricAcid's Avatar
 
Join Date: May 2008
Posts: 546
a.) nobody claims that the stock market will return 10% a year
b.) his math example is correct, but only to the naive. He is only explaining the difference between arithmetic and geometric means, when any responsible person only cares about geometric means (always less than or equal to arithmetic means) for returns of the stock market.

Inflation is at 12% too
__________________
CitricAcid is offline   Reply With Quote
Old 06-18-2008, 10:41 AM   #6
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
What a blatant ad.

Ah, yet another person equating index investing with only investing in the S&P 500. I can use index funds for real estate, foreign investments, mortgage bonds, precious metals, debt instruments, and more.
__________________
ats5g is offline   Reply With Quote
Old 06-30-2008, 04:23 PM   #7
Confused about dryer sheets
 
Join Date: Jun 2008
Posts: 1
@haha - You don't consider the claims just because the post promotes the author's services?

@Marquette - How does one calculate their own personal inflation? I know that I drive less than I used to because of gasoline price. I eat out less because overall my expenses are going up. The amount of my expenses are going up, but what I get for my spending seems to be going down. I don't even understand inflation.

@Citric - I've had so many financial planners tell me the market always goes up 9% to 10% per year over the long run... it's not even funny how much I hear this. I've also had my old financial planner give me geometric means to analyze my losses against my gains... that I only now realized were useless after reading that blog post.

@ ats5g - Yes I can invest in anything using publicly traded securities, but my money just goes off out of sight and I get a statement telling me what happened with it. I personally have taken the time to learn how to evaluate real estate and I can find properties that will return me 15% year without speculation.

All in all, I think there's a lot to learn from that blog post. If you don't want to buy the products or services of that guy it doesn't mean stop thinking about what he's saying.
__________________
independentthinking9876 is offline   Reply With Quote
Old 06-30-2008, 06:33 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Quote:
Originally Posted by independentthinking9876 View Post
I personally have taken the time to learn how to evaluate real estate and I can find properties that will return me 15% year without speculation.
If this is true, why worry about 10% in the stock market. Stick with a sure thing.


Edit to add: Didn't notice that independ..... wasn't the OP
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 07-01-2008, 10:21 AM   #9
Full time employment: Posting here.
CitricAcid's Avatar
 
Join Date: May 2008
Posts: 546
Quote:
Originally Posted by independentthinking9876 View Post
@Citric - I've had so many financial planners tell me the market always goes up 9% to 10% per year over the long run... it's not even funny how much I hear this.
You're just listening to the wrong people, as in financial planners. Listen to this board or just facts. Also, you ARE supposed to use geometric means for gains in these types of calculations.
__________________
CitricAcid is offline   Reply With Quote
Old 07-01-2008, 10:37 AM   #10
Dryer sheet aficionado
 
Join Date: Jun 2008
Posts: 44
You should pick up Exchange-Traded Funds for Dummies, it is very informative on ETFs and index funds. It will give you more of an unbiased picture than this article and won't try to sell you anything. Before you invest in index funds make sure you do as much research as possible, do not only rely on web articles.
__________________
Jessica08 is offline   Reply With Quote
Old 07-01-2008, 11:20 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Quote:
Originally Posted by independentthinking9876 View Post
@haha - You don't consider the claims just because the post promotes the author's services?
A short but fairly accurate answer to your question is, no, I don't consider claims made in an obvious sales pitch.

Not because there may be no value, though on form that would be quite unusual, but because it would be akin to looking for diamonds in cow pasture. Maybe some are there, but not likely. And the process can be counted on to be unpleasant.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   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
Kaderli's 90% S&P Index Fund Portfolio Hydroman FIRE and Money 2 03-28-2007 08:27 AM
Where can I find S&P 500 Index returns? Telly FIRE and Money 10 10-23-2006 06:06 PM
Index Investing oisif FIRE and Money 10 09-29-2005 04:51 PM
Balanced Index Investing? charlie FIRE and Money 17 04-28-2004 01:39 PM

 

 
All times are GMT -6. The time now is 11:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.