Legendary investor Jack Bogle says he hasn’t seen such stock market volatility in 66 years

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Published: April 6, 2018 9:08:33 AM

While the current global stock market volatility has caught some unawares, legendary stock market giant Jack Bogle says he hasn’t seen such volatility in the stock markets in 66 years.

Jack Bogle says that he hasn’t seen such stock market volatility in 66 years. (Image: Reuters)

While the current global stock market volatility has caught some unawares, legendary stock market giant Jack Bogle says he hasn’t seen such volatility in the stock markets in 66 years. In an interview to CNBC, Jack Bogle said, “I have never seen a market this volatile to this extent in my career.” The ‘king of index funds’ has an investing career of more than 6 decades. “Now that’s only 66 years, so I shouldn’t make too much about it, but you’re right: 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,” Jack Bogle told the channel.

These comments were made amid rising volatility in the global stock markets due to fears of a potential trade war between US and China. According to a report by CNBC, The S&P 500 has posted 26 moves of at least 1 percent in 2018 with often wild swings from one day to the next.

Back home, the Reserve Bank of India too highlighted that rising stock market volatility and potential trade wars pose a threat to outlook. In its monetary policy review released yesterday, RBI observed that equity markets globally have shed most of the gains of the previous quarter in a heavy sell off in February-March, attributable to optimistic US job reports and the US imposition of new tariffs on Chinese goods.   

Jack Bogle is often referred to as the “King” of index funds, as he pioneered the concept of index investing. Notably, he founded the prominent trillion dollar AUM fund, Vanguard, way back  in 1975. Jack Bogle had pioneered the concept of index fund investing on the premise that, in the long-term, it’s near impossible to beat the market, after considering costs associated with actively managed funds. Such is his repute that Fortune magazine had nmaed him as one of the four “Investment Giants of the 20th Century,” alongside Warren Buffett, Peter Lynch and George Soros in 1999.

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