"No man can become rich without himself enriching others"
Andrew Carnegie



Tuesday, August 7, 2012

Avoiding Stocks Is a Big Mistake: Vanguard Founder

Knight - Projections at STA conf
Knight - Projections at STA conf (Photo credit: watz)
If you don't have money in the stock market (^GSPC) and you hope to retire someday, the founder of The Vanguard Group says you're making a big mistake. John 'Jack' Bogle tells us if you're investing for the long-term don't get spooked by events of late. "Knight Capital is meaningless for anyone in the market for the long haul," he says. "In fact, you're probably in a mutual fund and you can pat yourself on the back for being smart." In other words, for most individual investors the risk from Knight Capital is non-existent because most individuals hold a basket of stocks and the diversity of the basket hedges out the single stock risk. And he takes issue with commentary from Bill Gross who believes "the cult of equity is dying." "Like a once bright green aspen turning to subtle shades of yellow then red in the Colorado fall, investors' impressions of 'stocks for the long run' or any run have mellowed as well," Gross says. ... Continue to read.
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