Why I'll Beat This Legendary Investor's Returns

If you're a huge fan of making unreasonably large piles of money, like me, or a self-described "Boglehead," you'll know that the legendary investor John C. "Jack" Bogle, of Vanguard Group, recently released his expected returns forecast, with extensive commentary, for the next decade. Bogle, of course, has been doing these forecasts and commentaries for years, and it has to be said that he's far more accurate than many financial crystal-ball-gazers out there. Here's his secret: Bogle takes the current dividend yield, factors in a growth estimate for earnings, and measures what he calls "speculative return." If the price-to-earnings (P/E) ratio goes up, there's a positive expected return. On the other hand, if Bogle thinks the ratio will compress over the next decade, he'll call a negative speculative return that he subtracts from the earnings and dividend calculator. It works pretty well. Now, he doesn't necessarily nail returns precisely to the last percentage point, but Bogle does have a knack for conveying the prevailing bullish or bearish conditions over the next decade. But here's the thing: As much as I respect Bogle's experience and accurate track record, we've got a big difference of opinion. You see, I think his return expectations, which I'll show you in a minute, are too low. Essentially, Bogle and the "Boglehead" investors following along are settling for less - far less - than the unreasonable returns possible in a market like this. Let me show you what kind of profits are possible - and how you can get at them... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Why I'll Beat This Legendary Investor's Returns appeared first on Money Morning - We Make Investing Profitable .