Jack Bogle: There Are No Investors Left, Only Speculators

Mr. Bogle, an invaluable voice of reason for investors over many years, suggests that there is too much speculation in our equity markets.

Click here to see the short interview.

His comments jibe entirely with my post, .

His assertions are backed by excellent stats:

  1. SPDR S&P 500 (SPY) turns over 10,000% per year
  2. Markets direct $200 billion/yr to new investments compared to $40 trillion/year in trading

Investing is supposed to be the process of directing “capital to its highest and best use”.

Our financial system, by facilitating and encouraging so much speculation, is clearly failing society while, quite meaningfully, enriching the middle  men, i.e. Wall Street.

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