Many of you are familiar with Jack Bogle, founder of Vanguard. Bogle was a pioneer in the investment community, being the driving force behind low-cost index fund products. Even well into his 80’s he is revered for his perspective on the market and the investment environment in general.
Bogle was interviewed on CNBC on Tuesday, December 16th and his main message was the following:
- Get used to the market's volatility
- Have a plan to stay the course
- Use asset allocation to help you meet your financial objectives
We have been practicing this form of long term investing ever since our inception in 1999, and are continually reminding our clients that staying in the market for the long term with an appropriate asset allocation strategy is the most prudent investment strategy. While we don’t agree with all of Bogle’s points, such as not investing directly overseas (where the markets are much less expensive than the U.S.), his voice adds a sensible viewpoint amidst the recent market volatility.
To watch the interview in its entirety, please click here. As always, if you have any questions about long term investing, market volatility or anything else investment management related, please don’t hesitate to contact us to schedule a complimentary consultation.