Cyberattacks against accounting software firm Wolters Kluwer and the City of Baltimore in May showed how the newest wave of malicious hacking can have significant, often...Technologyread more
The European parliamentary election is the second largest democratic exercise in the world.Europe Newsread more
Biden had criticized Kim Jong Un as a "dictator" and a "tyrant" at a recent rally in Philadelphia. North Korean state media responded by calling Biden a "fool of low IQ" among...Politicsread more
Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
Investing pioneer Jack Bogle believes investors should dramatically lower their expectations for returns over the next decade.
The creator of the first index fund said the following in an interview with CNBC's Mike Santoli:
"Just for mathematical reasons, the dividend yield is 2 percent, a little under 2 percent in fact, and the long-term dividend yield on stocks is pretty close to 4 ... the earnings growth on stocks has been a little over 5, that's going to be a very tough target in the future so let's call it 4 ... 4 and 2 percent give you a 6 percent investment return, but then you have to take ... the valuations in the market. ...You take that 6 percent return and maybe knock it off a couple of points perhaps for a lower valuation, slightly lower valuation over a decade and you're talking about a 4 percent nominal return on stocks. And that's low, lower than history. History is around 6 and a half."
The founder of the Vanguard Group, who was recently called a "hero" to individual investors by Warren Buffett, said that the market is even more overvalued than it appears because Wall Street today just looks at operating earnings, which take out all the "bad stuff."
So if this is the outlook ahead, what should the regular investor do?
"It doesn't mean you should stop investing, but it means you should be investing in accordance with the expectation of lower returns in the future, and if you're wrong and if I'm wrong and the returns are higher, well, you're just going to have a terrible problem: Your nest egg is going to be larger than you would have ever expected."