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Vanguard Founder Jack Bogle Tells Fox Business “I Don’t Think Everything Is Fine”

September 07, 2011
fox business

fox business

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Vanguard founder Jack Bogle spoke with FOX Business Network’s (FBN) Liz Claman and David Asman about the domestic and international markets. Bogle talked about Europe’s debt crisis and its potential impact on the United States saying, “Don’t think everything is fine. I don’t think everything is fine, but I think stocks represent a decent expectation for the coming decade.” Bogle also addressed the volatility in US markets, saying, “It’s a crazy speculator’s market in which one day it’s the Apocalypse and the next day it’s Nirvana and we switch back and forth like a light switch. It makes no sense to me.”

Excerpts from the report are below.

On if European banks might bring the US down:

“There’s always a concern. I don’t see that the European banks are all that well financed themselves but I think you have to rely on better fiscal policy over there, which is at the moment, country by country and the monetary policy they’re following I think is about right, fairly loose generally, except perhaps in Germany, and hope that it goes through. Ultimately for the equity investor you’re betting on corporate America which has half of its resources around the world outside the US but it’s an international portfolio that I think will survive even if we go through a period of great difficulty, which is quite possible. Don’t think everything is fine. I don’t think everything is fine, but I think stocks represent a decent expectation for the coming decade.”

On the US markets:

“It’s a crazy speculator’s market in which one day it’s the Apocalypse and the next day it’s Nirvana and we switch back and forth like a light switch. It makes no sense to me.”

On if investors should reallocate funds:

“If you’re an asset allocator and it’s not a bad thing to do, you wanna keep say a 60% 40% stock bond ratio, do it every quarter or when the ratio gets outside of 58-62% or 55-65%. I don’t think you should do it daily. It requires too much time and keeps you from your family and your job which are much more important.”

On if stocks will outperform gold:

“Yes I do. Stocks have an internal rate of return.”

On his advice to investors:

“Staying the course in a traditional program of stocks and bonds-don’t get diverted by new ideas and new innovations from our wonderful Wall Street innovators who bring us nothing but trouble a lot of the time. Try and close your eyes and your mind to all that noise out there.”

Watch the latest video atvideo.foxbusiness.comWatch the latest video atvideo.foxbusiness.com

**FOX BUSINESS NETWORK**

Rating: 3.8/5 (9 votes)

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