Tags: Bogle | stock | investors | sell

Bogle to Stock Investors: 'Don't Do Something, Just Stand There'

By    |   Thursday, 16 October 2014 07:51 PM

Add Vanguard Group founder Jack Bogle to the list of those who don't think you should sell shares in reaction to the stock market's recent gyrations. 

The S&P 500 index has slid 7.8 percent from its Sept. 19 high.

"A 10-percent decline in the market, it's really a nothing, when you get right down to it," he told CNBC. Given the speculative nature of the market, investors should be prepared for a loss as big as 25 percent, he said. 

"A 50 percent decline—and I've been through about five of them—it gets very difficult to stay the course," Bogle said. "But it's been right all through my career, and I think it's going to be right again today. Don't do something, just stand there." 

The S&P 500 posted a negative return of 37 percent in 2008.

The stock market now isn't a "bad place," Bogle said. "It's not cheap," but "this is not a bubble."

He sees stock returns averaging about 6 percent for the next decade.

Dan Morris, global investment strategist at TIAA-CREF, doesn't think an extended decline is in store for the market.

"The reason for that is underlying earnings for S&P 500 companies," he told Reuters. "It's been pretty consistently upward, and we think it's going to go continually upward. The underlying fundamentals support a rebound."

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Add Vanguard Group founder Jack Bogle to the list of those who don't think you should sell shares in reaction to the stock market's recent gyrations.
Bogle, stock, investors, sell
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2014-51-16
Thursday, 16 October 2014 07:51 PM
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