Bogle: Stocks Priced For 6% To 7% Returns

Legendary Vanguard Founder Jack Bogle says not to worry about short-term issues like the recent emerging market turmoil. Over the long haul, it’s the performance of companies that will drive stocks, he says, and he thinks corporate growth is indicating stocks should grow 6% to 7% annually. “In the long-term … all value [is] created by corporations, which means, in an odd way, stocks are derivatives,” Bogle tells CNBC. “They’re derivatives of the value created… Read More

Bogle: Don’t Rebalance — If You Can Stand It

Rebalancing the assets in your portfolio back to a target weight is an often-cited common sense tenet of investing. But legendary Vanguard Founder Jack Bogle says you might want to think twice about doing so. Boggle tells Money magazine that “If you can ignore market fluctuations along the way, it’s better not to rebalance, since you’re likely to get higher returns.” In a recent study, he looked at how a portfolio with 70% in stocks… Read More

Simple Advice From An Investing Legend

Vanguard Founder Jack Bogle has some simple advice for investors: Invest — and don’t peek. “Nothing,” Bogle tells Canada’s Globe and Mail when asked what keeps him awake at night. “Just invest, and don’t peek. Don’t open your retirement plan contribution statements every quarter. Put in money regularly, and when you retire 40 or 50 years later, and open the statement for the first time, you run the high risk of heart failure — you’ll be… Read More

Favorite Charts from Bogle, Wien, and Others

Business Insider recently asked a number of strategists to discuss their “favorite charts of 2012,” and some of the gurus participating offered some very interesting data.  Byron Wien of Blackstone Partners, for example, provided a chart that showed the pace at which the money supply has expanded vs. the rate at which gross domestic product has grown. “For a long time money supply and GDP grew at about the same rate,” he says. “Since the… Read More

Bogle Talks Election, Dollar-Cost Averaging

Vanguard Founder Jack Bogle says the Presidential Election will ultimately have little impact on stocks. Bogle tells FOX Business Network that companies’ economic performance over the long run is what really drives stock returns, and “that’s not going to change [on Election night], it’s not going to change tomorrow.” Bogle also talks about why he thinks dollar-cost averaging is not a winning strategy over the long haul.

What Bogle Sees For Stocks & Bonds In The Next Decade

Vanguard Founder Jack Bogle says he expects stocks to earn real returns of about 4.5% per year for the next decade, and bonds to earn virtually no real return. Bogle divides returns into two categories: investment returns, which are determined by the market’s dividend yield and corporate earnings growth, and speculative returns. Today’s dividend yield is around 2%, and he sees earnings growing at about 5% per year over the coming decade, which would make for a… Read More

Bogle: Stop Gambling and Invest

In a recent interview, Vanguard founder Jack Bogle said investors should “get out of the casino”, and practice real investing — not speculative trading. “Get out of the casino, own Corporate America and hold it forever,” Bogle, long a proponent of buy-and-hold index funds, said during ‘The Big Interview’ on MoneyLife with Chuck Jaffe, according to MarketWatch. “No trading, no nothing. You don’t need to trade; you don’t need to worry about the market. To… Read More

Bonds Very Unlikely to Beat Stocks over Next Decade, Says Bogle

While bonds have performed very well in recent years, Vanguard Founder Jack Bogle says the odds are very high that stocks will outperform bonds over the next decade. “I think the odds that stocks will give a higher return than bonds over the next decade are probably 85 to 90 percent,” Bogle said on CNBC’s Fast Money. “The fundamentals are that bonds are yielding maybe 2.5, 3 percent if you throw in some corporates, and… Read More