Jack Bogle: Investors are not paying nearly enough attention to the risks that could affect markets

[mahatmakanejeeves]

Hat tip, MarketWatch:

S&P 500 lows? We ain’t seen nothing yet, says Gundlach

Published: Dec 12, 2018 9:32 a.m. ET
....

“Investors are not paying nearly enough attention to the risks that could affect our markets: an unstable U.S. federal government, a Brexit debacle, and a U.S. stock market that remains at relatively high valuations.” — That was Vanguard’s 89-year old founder and investing legend Jack Bogle, in an interview with Financial News.

ASSET MANAGEMENT

Vanguard founder Bogle says buy bonds to battle ‘Brexit debacle’

Fund management veteran worries investors are not paying enough attention to the risks in global markets



Jack Bogle Getty Images

By Chris Newlands
December 12, 2018 Updated: 1:19 p.m. GMT

Jack Bogle says investors need to re-examine their portfolios to make sure they have enough exposure to bonds to protect against what the investment legend calls an “unstable US federal government” and a “Brexit debacle”.

Bogle’s comments come as UK prime minister Theresa May faces a vote of confidence in her leadership and after MSCI, the world’s biggest provider of investment indices, said British stocks could fall as much as 25% if the country’s politicians reject the UK government’s proposed deal to leave the EU and there is a disorderly exit from the trading bloc.

The 89-year-old founder of asset management giant Vanguard told Financial News: “Investors are not paying nearly enough attention to the risks that could affect our markets: an unstable US federal government, a Brexit debacle, and a US stock market that remains at relatively high valuations.

“Most investors would be wise to re-examine their portfolios to make sure that they are balanced with an appropriate bond position to provide some stability in volatile markets.” .... Bogle added that investors making the switch would “sleep better, lower their risks, and maybe even improve their long-term returns”.
....

Follow the author on Twitter at @newlands_chris

To contact the author of this story with feedback or news, email Chris Newlands

Disclaimer: He could be wrong. Nonetheless, I've left a fair chunk of change with Vanguard.

[safeinOhio]

1. A bunch of them have already

invested their tax breaks in stock buy back to raise stock value. Money is now gone or going away with Market lose. That money is now gone and tax payers are stuck paying for their gamble.

Sucks