I just had a delightful conversation with Gus Sauter, chief investment officer of Vanguard. You might expect the man who used to run the much-beloved investment shop’s index funds to be dull as dirt, but quite the contrary. Did you know that he started a gold mine back in the early 80s?
As the market has gone a-plunging the past few days, Vanguard’s seen an uptick in calls from investors wanting to know what to do. In a shocking turnabout, Vanguard has been advising people… to invest for the long-term. In fact, yesterday Vanguard posted a Q&A with Sauter on just that topic. An excerpt:
Disembodied questioner: How should investors respond?
Sauter: For many investors, the wisest response is no response at all.
When I asked Sauter that question, he mentioned the Q&A on the web site, and also made one other point. You can listen to what he had to say by clicking on this hyperlink.
I know, I know, this isn’t sexy. Buy and hold. Ignore the market. Rebalance once—and only once—a year. The thing is, it also happens to be the best investment advice out there. And I’m not the only one who thinks so.
Barbara!