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Former Goldman Sachs Vice Chairman Robert Kaplan on how investors should wade through the market volatility.
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Are -- -- -- exactly what are those signs assigns to come back to former Goldman Sachs vice.
General Robert Kaplan who got a ton of emails and we were.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- On for returning gates Robert -- that it could be on what do you look for Bob what do you what do you have to ceded to to dip in the -- Well -- I agree with Jack Bogle there are periods of time -- we don't have good visibility this is one of them.
We've gone through the last year and I think we had a pretty good feel for what corporations we're gonna earn this year and next year.
I think what's going on the macro events the slowdown.
That's going on this country what's going on in Europe.
Have create a lot of uncertainty and so I think for most investors this will unfold.
Over the next number of weeks and months we will get a good idea on October.
When corporations announces third quarter earnings and then talk about their outlook that'll be good data look at the problem is -- a couple of months from -- If you wait in the mean I'm not invest in the mean -- well this is why the best of advice for investors not heard Jack Bogle give it before you need proper asset allocation.
You can't have all your money in the stock market you can do that is famous -- like the vanguard index on and just.
Part get a phone which is I guess by nature well no -- it's also said he's got a good rule of thumb that you take your age.
And you're -- should be about haven't bonds I don't know if I subscribed up and the point is but He also its long term won't got -- -- it was what.
You years.
You've got to yeah absolutely you you need to have some outside the market and some in the market.
Because we're gonna go through a period where macro events are gonna drive until we get better sense on.
Well corporate earnings are gonna be and means there's going to be more volatility more ups and downs more scary periods of these last two days are not Sudan -- to you'd -- indictment.
I'm glad to see it settle down a bit today bit I expect we'll have more shocks.
Indeed one of those shots we could be looking at about as we've got these reports and our -- turn against Reno has as has been its founding on.
That European central bankers are trying to come up with a way -- to get -- a backstop for these banks.
Just suggests and now wouldn't -- announcement of something like that.
Be enough to unnerve the markets.
I don't IE it depends what they announce.
But I don't think and any facts -- -- implied.
I think you've got to remember back in member and oh wait and 09 the Federal Reserve provided credit support.
To the banks here.
And was a stabilizing.
Force and -- -- signaling to the markets that they needed it.
Well in fairness I think that -- already left the barn people know you the European banks and European sovereigns are in a fragile.
State and I think it would actually when they come -- -- on a -- -- -- -- -- -- -- were designed.
You don't quite buy that well.
We will see with the U actually comes out with that the criticism of the U up to this point is they've been behind the curve into slow.
And that's been the criticism I think in the in the market I think if they take a bold action which I'm not sure they will but if they did I actually think that would encourage people.
That's my view and others may disagree but -- -- -- -- Well I would trust your judgment Robert Kaplan thank you very much enemy.
