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Legendary Jack Bogle Shares His Outlook for the Stock Market

September 07, 2012 | About:
Dheeraj Grover

Dheeraj Grover

Legendary founder of Vanguard Group Jack Bogle was on on CNBC to discuss his views in wake of new bond-buying program announced by ECB and the resultant stock market surge. He also shared his outlook for the markets.

-- Jack termed ECB's move as a stop gap solution and asked stock investors to ignore this ECB move.

-- He thinks that markets take these things too seriously like Mario Draghi saying that he will do whatever it will take to fix the European problems, but the EU's problems are too big to be solved.

-- He said today's stock market surge was a great time for sellers to take some profits.

-- Investors should not be too excited about these short-term fluctuations in the market and should keep their long-term goals in mind. His advice: "Don't do anything."

-- He also said that investors are realizing that hedge funds don't make money and are shifting back to index funds.

-- Bogle believes that stock equities will outperform bond returns and should be able to provide 7% returns going forward.

-- Bogle agrees with Bill Gross that stock market returns will be sub-par but also thinks that Bill Gross takes his whole equity market dead view too far.

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

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