Author Topic: Vangard Chief Investment Officer on growth in 2019-2020  (Read 843 times)

lifeplus

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Vangard Chief Investment Officer on growth in 2019-2020
« on: February 12, 2019, 12:18:07 PM »
I just saw this pop up and since we all love Vangaurd, and this is coming from Vangard's CIO, I thought it'd be worth posting here for discussion.

https://www.cnbc.com/2019/02/11/vanguard-cuts-expected-return-for-stock-market-over-the-next-decade.html

Mississippi Mudstache

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Re: Vangard Chief Investment Officer on growth in 2019-2020
« Reply #1 on: February 12, 2019, 12:36:35 PM »
I just saw this pop up and since we all love Vangaurd, and this is coming from Vangard's CIO, I thought it'd be worth posting here for discussion.

https://www.cnbc.com/2019/02/11/vanguard-cuts-expected-return-for-stock-market-over-the-next-decade.html

Does it change your plans in any way? I still plan to save as much money as possible each year until I hit 25x expenses.

Maenad

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Re: Vangard Chief Investment Officer on growth in 2019-2020
« Reply #2 on: February 12, 2019, 02:47:23 PM »
I love Vanguard for their low expense ratios, doesn't mean their crystal ball is better than anyone else's.

CoffeeR

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Re: Vangard Chief Investment Officer on growth in 2019-2020
« Reply #3 on: February 17, 2019, 03:08:23 PM »
I just saw this pop up and since we all love Vangaurd, and this is coming from Vangard's CIO, I thought it'd be worth posting here for discussion.
I do not love Vanguard and actively steer people away from them. I do credit them for greatly lowering investing costs, popularizing index funds and overall helping the investor. I also have no issues with their index funds and would use them when appropriate (I do use one of them in one of my retirement accounts). Having said that, I would not recommend anyone invest with them directly due to their very mediocre customer service. I know I will get flak for saying this since "we all love Vanguard". So be it.

As for the CIO's crystal ball. He may be right, but for a company like Vanguard there is no upside in promising stellar results. People will remember and hold it against them if they are wrong. Conversely, they enthusiastically forget and forgive if the returns are better than predicted. The thesis of lower investing returns has been a primary subject and recurring theme of the financial-porn news cycle for many years now. Sooner or later they will be right.
« Last Edit: February 17, 2019, 03:23:32 PM by CoffeeR »