"We're in a low-return environment, and investors need to adjust their behavior accordingly."
, the 57-year-old CEO of Vanguard
], shares that warning in an interview with MarketWatch's
Victor Reklaitis. The resulting article touches on a number of topics, ranging from market predictions to books McNabb's reading.
McNabb tells MarketWatch
that he expects balanced portfolios to return just 5 to 5.5 percent over the next decade, as he sees stocks returning 7 percent a year and bonds returning 2.5 percent a year or less.
The article also offers some personal tidbits from the life of the chief of the world's largest mutual fund company by assets. McNabb, who once rowed for Dartmouth, still rows, cycles and runs.
"What I find is you do clear your mind, and it's just good periodically to be unplugged and actually let things percolate a little bit," McNabb tells the pub.
McNabb also points to three books he's been reading lately: The Outsider
by William Thorndike (and eight companies and their CEOs), The Boys in the Boat
by Daniel James Brown (about a U.S. crew team in the 1936 Berlin Olympics) and The Millionaires' Unit
by Mark Wortman (about Yale folks flying in the first World War).
Neil Anderson, Managing Editor
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