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Jack Bogle: 'Your Best Move Is to Stay Invested, Keep Your Fingers Crossed'

Image: Jack Bogle: 'Your Best Move Is to Stay Invested, Keep Your Fingers Crossed'
Jack Bogle (AP photo)

By    |   Monday, 24 Aug 2015 01:20 PM

So what’s the average investor supposed to do when global stock markets go haywire?

Nothing, says Jack Bogle, the legendary founder of the world's largest mutual fund company, Malvern, Pennsylvania-based Vanguard Group.

"Your best move is to stay invested and keep your fingers crossed," he told CNBC. "I've seen turbulence in the market," he said. "This is not real turbulence," he said.

"Don't do something. Just stand there," he said.

Unless you need your money in the short term, leaving your money in a portfolio with the right weighting of stocks for your age and risk tolerance still gives you the best chance for success in the long term — even in a volatile or falling market, CNBC reported.

Bogle said he’s not making any moves or changing his long-term game plan.

History shows the worst mistake, and the one investors are most apt to make, is to sell when the market is falling, CNBC reported. Investors underperform the market every year, because they follow the herd and sell in a panic.

To be sure, U.S. stocks pared their losses in midday trading after opening sharply lower on the back of big losses for China's stock market.

The Dow Jones industrial average was down 130 points, or less than 1 percent, as of 12:39 p.m. Eastern time. The index dropped more than 1,000 points in the opening minutes of trading.

Some analysts suggest that investors see the decline as an opportunity to buy. That's not as bad an idea, but "nobody can tell you when the market is going back up," Bogle pointed out. "Maybe one guy, and he's up in a different world, heaven," he said.

"We live in an uncertain world," Bogle acknowledged. "Stocks are fully priced and interest rates are already low," he said. "I have advice for long-term investors," he said. "I have no advice for speculators."

Newsmax Finance Insider Hans Parisis offers similar advice to investors.

“Long-term investors should, at least in my opinion, try to remain patient and certainly shouldn't follow the herd,” Parisis wrote.

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So what's the average investor supposed to do when global stock markets go haywire? Nothing, says Jack Bogle, the legendary founder of the world's largest mutual fund company, Malvern, Pennsylvania-based Vanguard Group.
jack bogle, invest, stock market, advice
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2015-20-24
Monday, 24 Aug 2015 01:20 PM
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