In the wake of the market's worst week since 2011, the question for individual investors is what to do?
Nothing, says Jack Bogle, the legendary founder of the world's largest mutual fund company, Malvern, Pennsylvania-based Vanguard Group. "I've seen turbulence in the market," he said. "This is not real turbulence."
"Don't do something. Just stand there," he quips. Aside from concerns about debt, the long-term fundamentals in the U.S. economy are sound, he pointed out. Unless you need your money in the short term, leaving your money in a portfolio with the right weighting of stocks for your age and risk tolerance still gives you the best chance for success in the long term—even in a volatile or falling market. Bogle himself isn't making a move.