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John Bogle explains why index investors shouldn’t fear a stock downturn

Fresh off a weekend visit to the “capitalist Woodstock,” the annual shareholders meeting for Warren Buffett’s Berkshire Hathaway BRK.A, -0.11%BRK.B, -0.13% , Vanguard Founder John Bogle addressed an interesting question that must vex any retirement investor who relies on index funds.

Bogle was asked the following Monday to explain if the move by investors toward index-style exchange-traded funds (ETFs) was creating a new kind of risk.

Namely, what will those investors do when the market inevitably turns sour?

Over the weekend, Bogle had said that a stock market that is 75% indexed would be a tipping point, but in the interview he backtracked.

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