Tags: Bogle | Buy | Stocks | Double | Money

Bogle: Buy Stocks and Double Your Money in a Decade

Tuesday, 20 Sep 2011 08:39 AM

Investors should buy and hold stocks because returns on equity will run at 7 percent, says Jack Bogle, founder of the Vanguard Group.

"That would mean you’ve doubled your money in the decade," Bogle tells CNBC.

Stocks may be down lately but growth will return and with it, better days for stock markets.

"What I try to point out to people is the stock market moves in cycles. We had this great cycle in the 1980s, this great cycle in the 1990s, this terrible cycle in the first decade of century and on average for the three of them, it was a rather normal level, maybe a little bit above that, of 9 percent," Bogle says.

bogle200.jpg
Jack Bogle
(Vanguard file photo)
"So we can’t get too deep into the problems of the single decade when it's kind of a makeup decade for those two insane decades that went before."

For now, many investors remain nervous over a future that's anything but certain.

Calls for a double-dip recession have grabbed headlines for months now while the world watches to see how Europe navigates its way out of its debt crisis.

So far, the U.S. remains on the edge of recession and Europe remains on the edge of abyss but neither have fallen in.

"We're in a no man's land," says Robert Stein, the head of Astor Asset Management, the Associated Press reports.

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"As a portfolio manager, I would like to have clarity. If it's going to be a recession, we know what to do. If the economy is improving, that's even better. But the economic data that's been coming out is doing a great job of creating more question marks."

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Investors should buy and hold stocks because returns on equity will run at 7 percent, says Jack Bogle, founder of the Vanguard Group. That would mean you ve doubled your money in the decade, Bogle tells CNBC. Stocks may be down lately but growth will return and with it,...
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