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Bogle: Investors Should Stay the Course Despite Turmoil

Sunday, 20 Mar 2011 03:01 PM

Investors shouldn't ditch their stocks and run for cover despite the beating that Middle East unrest and the Japanese earthquake is inflicting on global markets, says legendary investor John Bogle.

While older investors should be in safer bonds, the rest of us should "stay the course," Bogle tells CNBC.

"Be very careful about your asset allocation. I would never get out of the stock market," Bogle says. "Think about your age having something to do with your bond position."

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John Bogle
Japan will recover from the disaster, and the rest of the world with it. Bogle adds.

"In Japan, they will recover from all this. You can argue I think that it's a little bit like what World War II did for the U.S. — called on enormous productive facilities and finally a huge over-employment," Bogle says.

"That's what really a lot of people feel brought us out of the Great Depression."

The Japanese quake and tsunamis have thrown already volatile stock and foreign-exchange markets deeper into a whirlwind, prompting many to put their money in yen, which is surging since the quake and threatening exports.

Leaders from the world's richest countries — the Group of Seven, or G-7 — have said they are ready to intervene in currency markets in an effort to calm the global financial system.

"We express our solidarity with the Japanese people in these difficult times, our readiness to provided needed cooperation and our confidence in the resilience of the Japanese economy and financial sector," G-7 finance officials say in a joint statement, the Associated Press reports.

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Investors shouldn't ditch their stocks and run for cover despite the beating that Middle East unrest and the Japanese earthquake is inflicting on global markets, says legendary investor John Bogle. While older investors should be in safer bonds, the rest of us should stay...
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2011-01-20
Sunday, 20 Mar 2011 03:01 PM
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