The legendary Jack Bogle, founder of Vanguard Investments, gave an interview to CNBC last week in which he said, “I have never seen a market this volatile to this extent in my career… I’ve seen two 50-percent declines, I’ve seen a 25-percent decline in one day, and I’ve never seen anything like this before.”
The “father” of passive index investing is, of course, talking about the powerful whipsawing on the Dow Jones Industrial Average and the much broader S&P 500; sharp, triple-digit declines followed by sharp, triple-digit rallies what seems like every other day or so.
It makes sense that an investor like Bogle – a passive investor – is less than thrilled by all the action lately. And as we’ll see, he’s off-base in his comments.
But even nimble, active players are watching this and asking, “What’s going on?”
Money Morning Capital Wave Strategist Shah Gilani is here to let us know precisely that and, even better, what needs to happen for us to go higher from here.
Here he is…
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