With smoke from the Lehman Brothers bankruptcy still lingering, most everyday investors like you and I are in a state of hypersensitivity regarding their investments and retirement accounts.
Rightly so, because anyone who held an index fund, or any other investment for that matter, probably took a nasty hit after yesterdays 500 point drop in the Dow Jones Industrial average. I know mine did.
While trying to find an all encompassing way of answering the incoming emails from friends and recent blog subscribers (keep them coming by the way), I decided to post a CNBC interview with Vanguard’s Chief Investment Officer, Gus Sauter. Mainly because every single investor I know has an account at Vanguard and the majority of the emails posed the same question:
Matt – Is my money safe?
During the interview, Mr. Sauter actually made me breathe a little easier regarding the long term stability of my Vanguard accounts, and my other trading accounts as well. Mainly because Vanguard is the cream of the crop when it comes to mutual fund investing, and when everyday investors get scared, they would likely run to Vanguard for help instead of pulling money off the table like a madman.
Here are the shortened, paraphrased answers to the questions posed to Vanguard’s CIO during the interview:
The questions posed to Mr. Sauter during the interview were answered very well, and will obviously hold more weight than anyone with a blog like mine could hope to accomplish, which is why I chose to paraphrase.
[see video below]
Questions / Comments / Concerns ?