Vanguard founder Jack Bogle’s market views
On Tuesday, February 21, 2017, Vanguard founder and former CEO, Jack Bogle, discussed his views on the market’s recent movement and his passive investment strategy in an interview with CNBC. He also discussed why he believes in long-term investments.
Jack Bogle in current market scenario
The various US indexes such as the S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the Nasdaq Composite Index touched record highs on Tuesday, February 21, 2017. The Nasdaq Composite Index touched 5,867.89, the Dow Jones Industrial average touched 20,757.6, and the S&P 500 Index touched 2,366.71 on that day. According to Bogle, as the indexes are making new highs, investors should maintain a cautious stance about the market rally. He said, “I don’t think there’s any point in getting carried away.”
He said he isn’t super confident about the market (QQQ) (IVV) (VOO) rally. He believes corporate earnings will grow, but their improvement will slow. He also thinks that higher GDP growth is required for the economy to show strength.
Since the US election, the S&P 500 Index has risen 10.8% as of February 22, 2017. The Dow Jones Industrial Average and the Nasdaq Composite Index rose 13.4% and 13.3%, respectively, over the same time period. He also said that this market rally looks like “a bull market or a mini bull market.” However, investors should be cautious about the market rally.
In the next part of this series, we’ll analyze Jack Bogle’s view on long-term investments.