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Bloomberg
While a chorus of market experts is telling investors to look outside of the US for big returns, at least one loud voice is singing a very different tune — Vanguard Group founder Jack Bogle. The 88-year-old investor, who started the first index fund in 1976, said that he’s fully invested in US securities, with stocks and bonds having an equal share of his portfolio. And of course, it’s all indexed.
“I believe the US is the best place to invest,†Bogle said in a telephone interview. “We probably have the most technology oriented economy in the world. I would bet that the US will do better than the rest of the world. It is a simple bet on which economy is going to be the strongest in the long run.â€
This advice flies in the face of the market’s recent conventional wisdom. Numerous equities analysts and strategists at firms
like BlackRock Inc., Morgan Stanley and Deutsche Bank AG have encouraged investors to overweight European stocks because
of robust growth expectations and relatively high valuations in
US equities.
“Every single person I think I have ever talked to tells me I am wrong in this,†Bogle said. “If you believe in the majority, you can just throw my opinion in the waste basket.