Vanguard’s Bogle: Prepare for Stocks, Bonds to Miss Historical Returns

Let me begin by quoting Bogle, age 87, of Vanguard:

“‘accept the returns offered by the market, and don’t take risks to get higher returns, whether you’re talking about bonds or stock.”

No one has a monopoly on the truth and the future is unknowable. That includes Mr. Bogle. However, his experience and over 3 trillion reasons (assets under management) should not be ignored.

Having said that, I would like to hear more from him on why we should expect and accept lower returns. Slowing population growth? Is he talking about returns only in the United States suggesting no one wins all the time? Have corporations reached peak productivity similar to reaching the limits of Intel’s Moore’s law (no relation)?

This leads me to a connection suggested by Schumpeter: economic growth arises from productivity enhancing technological progress. Perhaps Bogle doesn’t see Facebook, snapchat, Whatsapp, etc. as productivity enhancing.

-Dr. Moore

http://www.newsmax.com/t/finance/article/734172

Advertisements

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s