Rob Bennett commented on 'Money Myths'
The ones on the saving side are very good, in my view. You've picked things that are truly myths and that truly matter (ideas that have truly led people in unfortunate directions).I accept that you...
View ArticleJosh commented on 'Money Myths'
The stock market is for money you can afford to lose. There are much better ways to invest money. The market is in a terrible position, and your money needs to be safer.
View ArticleRod Ferguson commented on 'Money Myths'
Are there any other (more compelling?) myths you think I should add? If I were making the presentation, I would add something about the myth of money = wealth, when money = transaction unit, but I'm...
View ArticleKP commented on 'Money Myths'
Myth - If I win the lottery then I'll be set. Why? Because the odds are already against you with the probability of winning the lottery. Plus, most people who win the lottery end up in DEBT. Check out...
View ArticleEugene Krabs commented on 'Money Myths'
Rob, how exactly do you calculate your valuations?
View ArticleKevin commented on 'Money Myths'
"A high income relative to those you know leads to happiness"I like this one, because it is so true...
View Articlebrooklyn money commented on 'Money Myths'
Myth: Your investment returns are based only on how well the investment performs. Truth: One of the biggest factors to calculating real return is cost. If you are paying high fees for a managed...
View ArticleRod Ferguson commented on 'Money Myths'
@Eugene - I assume you were asking me? I calculate purchasing power. Dollars are a handy mean (a unit to account with), but aren't reflective of wealth, especially over time.And I don't want to hijack...
View ArticleEugene Krabs commented on 'Money Myths'
Sorry Rod, my question was directed at Rob Bennett, the first respondent in this entry.I thank you the quick explanation though.
View ArticleApex commented on 'Money Myths'
@EugeneStop it! Seriously. Do you just like poking a cornered animal to see what it will do? And when it snaps at you for the 100th time when does it get boring?You know he isn't going to answer the...
View ArticleEugene Krabs commented on 'Money Myths'
Apex, please understand that I am only asking a question. A legitimate question in response to the assertion made in the first comment of this entry. It is no more and no less than that.I also want to...
View ArticleApex commented on 'Money Myths'
@Eugene, I am not going to comment on this again but that's frankly a load of bull.You and Rob went back and forth for about 100 comments on a previous post. It went on so long that it brought in other...
View Articlejim commented on 'Money Myths'
"Fact: There is no correlation between income and wealth."I disagree with that. I think you're overstating it. I'm guessing you really mean to say that "high income doesn't guarantee high wealth" which...
View Articledcs commented on 'Money Myths'
The only on that I can think of that you might have missed is "Myth: Wealthy people don't have to think about money - they can just buy whatever they want." In fact, with a few possible exceptions, I...
View ArticleRod Ferguson commented on 'Money Myths'
@JimI'll let FMF speak for himself, but I want to say that I agree with the statement. I have known people who made around the poverty level all thier lives, yet had modest to sizable net worth when...
View ArticleEugene Krabs commented on 'Money Myths'
@ApexHmm. I see your point. There is a good possibility it may devolve, in which case, I will stop, just like before, or FMF will close the comments. Whichever comes first.Then again, who knows, maybe...
View ArticleTodd commented on 'Money Myths'
"Taking valuations into consideration when buying stocks removes roughly 80 percent of the risk of stock investing. There has never been a time when stock were priced reasonably and provided a poor...
View ArticleTodd commented on 'Money Myths'
I think it's a great list of myths. I especially like the one that you don't need a high income to be happy if you spend far less than you earn and are happy without a lot of things. I have really...
View ArticleEugene Krabs commented on 'Money Myths'
Hey Todd, thanks for the response.As a fellow stock picker, I actually don't mind the idea of valuations. In fact, I monitor and valuate stocks almost daily.Also, I fully agree DD is a great stock. As...
View ArticleTyler commented on 'Money Myths'
# Myth: You can beat the market's return consistently without taking any additional risk. # Fact: You can not. No one can.I think you should revisit your data. If for arguments sake you assume a...
View ArticleRob Bennett commented on 'Money Myths'
"Rob, how exactly do you calculate your valuations?"There are 200 podcasts at my website on Valuation-Informed Indexing, Eugene. There are over 100 articles on the subject. There are four unique...
View ArticleRob Bennett commented on 'Money Myths'
"You know he isn't going to answer the question so you are just provoking the issue."I've answered tens of thousands of questions over the past eight years, as thousands of us participating in...
View ArticleRob Bennett commented on 'Money Myths'
"If FMF himself said that, I would have asked that question as well."I feel the same doubts re your motives that Apex feels, Eugene. But in the event that you are sincere, the valuation metric that I...
View ArticleRob Bennett commented on 'Money Myths'
"I don't think it's very polite to do that when you know it has a high chance of leading to a long series of unrelated posts that take over a topic and crowd out all others."Discussion of this topic...
View ArticleRob Bennett commented on 'Money Myths'
"Have faith. :)"Re this one, we're very much on the same track, Eugene.Things are rarely as good or as bad as they appear to be. People are capable of all sorts of surprises. Having faith in your...
View ArticleEugene Krabs commented on 'Money Myths'
"But in the event that you are sincere, the valuation metric that I use is P/E10."What you see is what you get with me, so yes, I am sincere. :)Unfortunately, we've already gone down this path before,...
View ArticleTodd commented on 'Money Myths'
Eugene: Thanks for the BP advice. I had not heard of BP bonds, but 10% dividend yield is nothing to shy away from. I did not know Obama was out to punish BP, its employees, and its shareholders with...
View ArticleRob Bennett commented on 'Money Myths'
"He says his valuations method can beat the market"I am absolutely saying that, Eugene. "and I am asking is if he could share with us exactly how."There's now a mountain of research showing that...
View ArticleRob Bennett commented on 'Money Myths'
"Unfortunately, we've already gone down this path before, and none of the quantitative questions regarding P/E 10 has been answered. From what I've seen, it appears that Prof. Shiller's data was used...
View ArticleRob Bennett commented on 'Money Myths'
"I too will move on so that I will not upset the other readers."That's of course fine, Eugene.If you ever do develop an interest, I hope you will take me up on my offer to talk these matters over at...
View ArticleTodd commented on 'Money Myths'
Rob: I looked over some of your web articles on Valuation-Informed Indexing very briefly. I think you are advocating re-balancing portfolios based on overall market index over- and under-valuation, on...
View ArticleRob Bennett commented on 'Money Myths'
"or are you looking at broad valuation over months and years?"Thanks for your question, Todd.Valuation-Informed Indexing is strictly a long-term strategy. There are no short-term allocation shifts at...
View ArticleSchroeder commented on 'Money Myths'
Rob wrote:"I look at the most likely 10-year return for stocks, using a regression analysis of the historical data as guidance. Then I compare that with what I can get from a low-risk asset class. I go...
View ArticleRob Bennett commented on 'Money Myths'
"10-year TIPS are currently yielding around 1% What is the likely 10-year return on stocks? Do stocks offer a better value proposition today than 10-year TIPS?"The most likely 10-year annualized return...
View Articlerick commented on 'Money Myths'
At the risk of derailing the other lines of chat I would suggest an additional myth. That myth is "debt is bad or debt is good" Too many people believe one or the other when in my opinion debt is just...
View Articlejim commented on 'Money Myths'
Rod F. But my point is that there IS correlation between income and wealth. Most people with low incomes have little wealth and most people with high incomes have higher wealth. There is correlation...
View ArticleEugene Krabs commented on 'Money Myths'
"It appears to me from looking at the comments you posted at the other thread that you are taking statements put forward at The Forbidden Site at face value, Eugene."For clarification, those questions...
View ArticleRob Bennett commented on 'Money Myths'
"I am wondering is why you are misinterpreting Shiller's own data?"No investment philosophy is worth defending with those sorts of tactics, Eugene.When you feel tempted to do something like that, it's...
View ArticleSchroeder commented on 'Money Myths'
Eugene wrote: " However, what I am wondering is why you are misinterpreting Shiller's own data?"Shiller's data is available to anyone. I can't speak for Rob. But I believe he takes the data and places...
View ArticleApex commented on 'Money Myths'
@rick,Bravo!!!That is the best comment here. And you summed it up perfectly and succinctly. But succinct is not my gift. :) Debt is not evil just as money is not evil or credit cards are not evil....
View ArticleRob Bennett commented on 'Money Myths'
"Shiller's data is available to anyone."This statement is exactly right. This statement I love. It's not even Shiller's data. It's everyone's data. Shiller just compiled it.We're all looking at exactly...
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