THE GAME CHANGER OF INDEX TRADING – JOHN BOGLE

He is an authentic and real game changer for trading, especially for retail clients. He is fully convinced that investing into indexes is much better investment strategy than invest into stocks. Last time when he bought stocks was at his college years since that time he has been only owning US indices, especially S&P 500.

He changed the investment industry with his Vanguard company. Nearly 40 years passed since he introduced his low-cost index fund Vanguard 500. At those days many folks thought that Bogle is crazy, but now his fund is the second biggest one in US and investing more than 1.7 trillion $ in US based indices. He founded that the best tradings are boring and most of the cases you don’t have to do anything just sit and watch the market. He invented the passively managed broad based index following strategy. The idea was behind the index trading:

• It is cheaper than actively managed funds
• Charge only 0.2% fee yearly
• Lower volatility
• It is small investor friendly – low costs
• Trading stocks is too risky - Doing the wrong thing(bad stock) at the wrong time(bad timing) is killing you.

He is only focuses on US markets and doesn’t care about other regions in the world, because the world market’s capitalization’s 52% is still in US. Today after 5 years of bullish market his fund is still bullish because he thinks you have to invest for long term and what seems today pricey in one year would seem cheap.

The BFM Assets Team.