Index Investing News
Friday, May 9, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Why Jack Bogle’s strategy of ‘lazy’ investing is making a comeback

by Index Investing News
November 12, 2023
in Markets
Reading Time: 4 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


Jack Bogle

Mark Lennihan | AP

Boring investing is making a comeback.

With the meme-stock rally in the rearview mirror and interest rates surging, individual investors are rediscovering the philosophy made famous by Vanguard’s founder, Jack Bogle. The father of market indexes preached low-cost, passive investments that compound over years. Fans call themselves “Bogleheads,” and the strategy “lazy” investing.

They’re well positioned for the current market. Timing has proved difficult this year, with eight days accounting for all of the S&P 500’s gains, according to DataTrek. Higher rates have slammed tech and growth stocks, which dominated retail traders’ portfolios during the pandemic. GameStop, the original meme trade, is down roughly 85% from its all-time high.

Dan Griffin, a self-proclaimed Boglehead based in Florida, said he watched the meme stock rally in amusement. The current market condition is proof that his “tortoise” investing approach is the right one to building long-term wealth, he said.

“It’s a little bit of vindication,” Griffin told CNBC. “I’m happy to be the boring investor, I’m happy to be the tortoise. While the hare does win sometimes, the tortoise more often than not, is going come out ahead.”

Christine Benz, a director of personal finance and retirement planning for Morningstar, said investors are gravitating towards higher yields right now to capture value — another core principle of the Bogleheads.

“Bogleheads are investing for the very long haul — the idea is that you’re putting money into your account and just adding to it, maybe not touching it or looking at it for another 30 years,” she said. “The meme stock phenomenon seemed so focused on being incredibly plugged into your portfolio and monitoring your investments — I see the Bogleheads’ philosophy as being antithetical to all of that.”

Wall Street Bets to Bogleheads

Brokerage firm Robinhood, once synonymous with day trading, is seeing a similar pivot to higher yields and longer-term thinking.

The company launched retirement accounts this year, and offers 3% back on cash as it tries to diversify away from slumping trading fees. Robinhood’s co-founder and CEO Vlad Tenev told CNBC that investors have been moving into cash, money market funds and bond ETFs. He noted more chatter in Bogleheads’ Reddit group, versus the infamous Wall Street Bets.

“One of the really interesting things that we’ve seen over the past couple of months is Robinhood being mentioned, and discussed in these traditional passive investing forums, like Bogleheads on Reddit,” Tenev said. “People are building long-term portfolios on Robinhood, taking advantage of the better economics and the tools to do that.”

Bond ETFs are one way retail investors have tried to capture rising interest rates. The SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) was the third most-bought name last week after the Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF (SPY), according to Vanda Research. It saw the largest single-day of net inflows to the ETF since the firm began measuring it almost a decade ago.

“Clearly, income-seeking retail investors are taking advantage of the new high-rate regime, which had been missing from the investment landscape since the pre-GFC [Great Financial Crisis] years,” Marco Iachini, senior vice president of Vanda Research, said in a note to clients. “Some are calling it ‘T-Bill and chill.'”

Younger investors are even more exposed to fixed income compared to their older counterparts. In its annual study, Schwab Asset Management shows millennial ETF investors have 45% of their portfolios in fixed income — compared to 37% for Generation X. The survey showed 51% of millennials plan to invest in bond ETFs next year, compared to 40% of baby boomers.

While far from a meme stock, the move to fixed income could still be risky.

The iShares 20+ Year Treasury Bond ETF (TLT), has seen $19.8 billion in assets flood in this year, according to BlackRock. If yields go up, funds like TLT will suffer — since bond yields move inversely to prices. That’s been the case this year, with TLT down about 50% from its record high. On the other hand, if yields fall, bond funds should outperform.

Don’t miss these stories from CNBC PRO:



Source link

Tags: BoglescomebackInvestingJackLazyMakingStrategy
ShareTweetShareShare
Previous Post

Celsius Network Obtains Approval for Restructuring

Next Post

New York Post Selects Cariloha for Best Blanket

Related Posts

Onto innovation indicators new inspection platform launch with income steerage of 0M-0M for Q2 2025 (NYSE:ONTO)

Onto innovation indicators new inspection platform launch with income steerage of $240M-$260M for Q2 2025 (NYSE:ONTO)

by Index Investing News
May 9, 2025
0

In search of Alpha's Disclaimer: The earnings name insights are compilations of earnings name transcripts and different content material out...

Autographed Warren Buffett books fetch as a lot as 0,000 at public sale

Autographed Warren Buffett books fetch as a lot as $100,000 at public sale

by Index Investing News
May 8, 2025
0

The Berkshire Hathaway sixtieth Anniversary ebook seen on the Berkshire Hathaway Annual Shareholders Assembly in Omaha, Nebraska on Could 2,...

What to anticipate when Take-Two Interactive (TTWO) experiences This autumn 2025 earnings outcomes

What to anticipate when Take-Two Interactive (TTWO) experiences This autumn 2025 earnings outcomes

by Index Investing News
May 9, 2025
0

Shares of Take-Two Interactive Software program, Inc. (NASDAQ: TTWO) stayed inexperienced on Thursday. The inventory has gained 23% over the...

The way to land a job in a ‘low firing, low hiring’ market: economist

The way to land a job in a ‘low firing, low hiring’ market: economist

by Index Investing News
May 8, 2025
0

Job seekers at a job truthful hosted by the Metropolitan Washington Airports Authority to help federal staff searching for new...

Key highlights from ConocoPhillips’ (COP) Q1 2025 earnings outcomes

Key highlights from ConocoPhillips’ (COP) Q1 2025 earnings outcomes

by Index Investing News
May 8, 2025
0

ConocoPhillips (NYSE: COP) reported its first quarter 2025 earnings outcomes immediately. Whole revenues and different earnings had been $17.1 billion...

Next Post
New York Post Selects Cariloha for Best Blanket

New York Post Selects Cariloha for Best Blanket

Sudan violence ‘verging on pure evil,’ UN warns

Sudan violence 'verging on pure evil,' UN warns

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Financial institution of America Q3 Earnings: Internet Curiosity Revenue Lastly Rose (NYSE:BAC)

Financial institution of America Q3 Earnings: Internet Curiosity Revenue Lastly Rose (NYSE:BAC)

October 16, 2024
Month-to-month Dividend Inventory In Focus: Ellington Residential Mortgage REIT

Month-to-month Dividend Inventory In Focus: Ellington Residential Mortgage REIT

April 13, 2022
Bain Capital’s 1 million bid sends Estia Health shares to near 5-year high By Reuters

Bain Capital’s $551 million bid sends Estia Health shares to near 5-year high By Reuters

August 7, 2023
LRE® on Tour – July 15, 2022

LRE® on Tour – July 15, 2022

July 18, 2022
To Isolate Russia, the West May Need the Global South. But is Modi Listening?

To Isolate Russia, the West May Need the Global South. But is Modi Listening?

June 23, 2023
Kamala Struggled To Clarify Funding For  Trillion Giveaway In Off-Digicam CBS Footage – FREEDOMBUNKER

Kamala Struggled To Clarify Funding For $3 Trillion Giveaway In Off-Digicam CBS Footage – FREEDOMBUNKER

February 6, 2025
How A lot Cash the Late Actress Made – Hollywood Life

How A lot Cash the Late Actress Made – Hollywood Life

September 28, 2024
SEC Delays Decision On Grayscale’s Ethereum ETF – Here’s The New Deadline

SEC Delays Decision On Grayscale’s Ethereum ETF – Here’s The New Deadline

March 24, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In