Bogle on Biggest Risk of Next Financial Crisis

In an interview last month, the founder of Vanguard group told CNBC that the market holds risks “that we don’t even know exist. And that’s the problem. Every crisis is different. Every bear market is different.”

But that’s not stopping him from investing, Bogle said, arguing that a buy-and-hold strategy tends to be effective regardless of the economic climate. “If you hold the stock market,” Bogle asserted, “you will grow with America.”

The article also quotes Warren Buffett from a 2017 interview on PBS NewsHour: “No matter what the headlines say‚ĶAmerican business is going to do fine over time.” The Oracle of Omaha recalled buying his first stock in 1942, when the headlines were less than uplifting. Buffett said, “We were losing the war in the Pacific.”

Markets rise and fall as a matter of course, the article explains, “but that doesn’t necessarily mean there’s significance to every move. As an investor, it helps to be patient and to accept a certain level of uncertainty.”