John Bogle Predicts Two 50% Declines
John Bogle Predicts Two 50% Declines in the Market Over Next 10 Years
Most people who have any money invested in the stock market know John Bogle. Bogle is the Founder and Senior Chairman of Vanguard and is known by many as the godfather of index funds.
Why index funds? As Motley Fool puts it, over 80% of the mutual funds don’t beat the indexes.
If that’s the case, and as Bogle would recommend, why not just put your money in index funds?
If index funds are less volatile than mutual funds and stocks and have a history of higher returns, what’s the argument for not using them?
-In 2008, the S&P 500 Index was down 37%.
-The S&P 500 was down over 50% from the highs of 2008 to the lows of 2009.
-From 1999-2008, the S&P 500 averaged a negative rate of return (a lost decade).
Bogle’s Amazing Prediction—Bogle went on CNBC a few weeks ago and made the most amazing statement. He predicted TWO 50% corrections in the stock market over the next ten years. Don’t believe me? Look at a screen shot from his TV appearance.
Here are some equally amazing quotes from this TV appearance: “Don’t worry about what stocks are doing today, tonight, or tomorrow…..look out a decade. It requires some guts to do this…”
Is that what you want to hear from your financial planner when he/she tells you how to grow your wealth? Don’t worry about today, have some guts, and, after a decade, you should be ok?
If Bogle is correct, then why would anyone in their right mind invest in the stock market without some strategy to avoid his predicted 50% declines?
Here is the question your financial planner should be asking you when discussing investing in the stock market: Should you take more risk than is necessary to reach your financial goals? The obvious answer to this question is NO.
If the answer is no, does it make sense to invest in even the least volatile stock index if there is no protection from the next TWO 50% corrections Bogle is predicting? NO!
A better way? Yes (and to learn more, simply click on the following link: https://www.wealthpreservationinstitute.com/portfolio-item/retirement-life/).
How would you like to grow your wealth in a tax free manner where there is no risk of loss due to downturns in the stock market?
If you’d like to learn how you can grow wealth with the above mentioned characteristics, you need to learn more about Retirement Life™. Depending on which Retirement Life™ product you look at, the 20 year back tested returns (even with two huge market crashes) have averaged between 7.5-9%. Would you have been happy with a tax free return over the last 20 years of between 7.5%-9%? Most would say absolutely yes.
To learn more about Retirement Life™, please click here.