John Bogle Recommends Federal Standard of Fiduciary Duty for Money Managers

Speaking at an industry conference this past week, Vanguard founder John Bogle suggested that all money managers should be subject to a federal standard of fiduciary duty.

Bogle believes that some money managers have been taking advantage of their positions at the expense of the shareholders whose interests they presumably represent.

Bogle also suggested that the mutual fund industry is leaning too heavily on past returns and, as a result, that Monte Carlo simulations should be abandoned entirely.

Last, Bogle again mentioned that he believes investors should stick to a buy and hold approach investing rather than market timing.  Many in the industry have questioned the validity of the buy and hold philosophy in light of the economic crisis.

Source: Investment News

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