Individual investors need to look at stocks — if they can stand the risk — because the alternatives are "terrible," mutual fund pioneer John Bogle told CNBC on Monday.
"The higher yielding asset is going to be stocks over bonds in the long run," the founder of The Vanguard Group said in a "Squawk Box" interview. "Including the decade that's coming up here."
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Arguing that 14,000 on the Dow Jones Industrial Average is just a number, Bogle warned about getting caught up in the ups and downs in the market.
"I just don't know how to predict it. My way of doing things — for years and years and years — is to look out 10 years," he said. "That means ignoring the short term."
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Bogle said he's always in the stock market, taking advantage of buying in at different price points.
"The alternatives to stocks are — I might as well say it bluntly — terrible. Bond yields are awful. Money market yields are so close to zero that you can't tell the difference," he said. "So I think you have to think about stocks a little bit different way, if you're willing to take the risks."
One of the ways to think differently, Bogle said, is to capitalize on the trend of buying dividend stocks, which can offer yields that are competitive or even better than bond yields.
—By CNBC's Matthew J. Belvedere; Follow him on Twitter