Wednesday, July 29, 2015

Vanguard warns investors

Vanguard Group is waving the yellow "Caution" flag at investors who think the stock market has come back for good and last year's collapse was just an aberration.

Vanguard warns investors

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Vanguard Group is waving the yellow "Caution" flag at investors who think the stock market has come back for good and last year's collapse was just an aberration.

"Markets have 'come a long way in a hurry,' as the saying goes," the Malvern mutual fund giant tells investors in a note here. The S&P and other U.S. and foreign index funds are up robustly; mining and junk-bond funds are up even more. But Vanguard Capital Value and other high-flying funds "can be properly considered aggressive, and all encompass significant risks... 'Hot' markets eventually cool."

Separately, Vanguard investment chief Gus Sauter drop-kicks his personal crystal ball: "No one knows whether we're due for a correction, or if we're witnessing the start of a really sustained bull market.

"It wouldn't be at all unusual for the market to pull back from its recent gains over the next few weeks or even months, as that often happens after a sudden rise in prices.

"But it also wouldn't be surprising if that were a temporary correction that's followed in very short order by another bull market..." 

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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