Vanguard founder Jack Bogle says that investors shouldn’t overreact to the news about Moody’s downgrading 15 banks and financial firms, and says Thursday’s big down day for the market was a great day for buyers and a bad day for sellers. Bogle tells CNBC that most investors should stand pat and stick to their long-term plans, because making decisions at times of crisis or extreme bearishness is a bad idea. He says price/earnings multiples for stocks aren’t bad right now, and he says that much of the bad news that continues to be in the headlines is already baked into stock prices. He says he’s concerned about the economic outlook, but thinks equities will be a good place for investors to be for the next decade.
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