The United States remains in an “economic crisis,” said Jack Bogle, founder of The Vanguard Group.
With growth continuing to be “extremely modest,” there is a “one in three chance we may go into a double dip,” he told CNBC.
His assessment of the economy contradicts the view of experts who announced this week that the recession officially ended in June 2009.
The technical definition of a recession most economists use is two consecutive quarters of negative growth in the nation's gross domestic product.
Investors shouldn't abandon stocks, he said.
“I don't know enough to tell anybody to make their stock allocation zero. Or if I was bullish I would never know enough to tell somebody to go 100 percent into stocks,” Bogle said.
Bogle said investors need to be patient with the market.
“But don't keep changing your the ratio of your portfolio. Just leave your darn ratio alone. Don't change things often. You'll be doing more guessing than anything,” he said.
With continued “instability” in the financial system worldwide and fluctuations in gold, the yen and dollar, investors need to remain “conservative,” Bogle advises.
“You may end up with smaller gains you otherwise would have gotten but you would have slept a lot better too,” he said.
Warren Buffett, the billionaire investor, also said the U.S. remains in a recession.
“We're not gonna be out of it for a while, but we will get out,” Buffett told CNBC television in an interview.
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