Vanguard’s outlook for portfolio returns is modest this year.
During a webcast with investors on Thursday evening, Vanguard CEO Bill McNabb and Chief Investment Officer Tim Buckley discussed their economic and market outlook for 2017.
The webcast focused largely on questions submitted by investors, a majority of which revolved around uncertainty and the incoming administration of President-elect Donald Trump.
McNabb and Buckley agreed it was still too soon to know what a Trump administration would mean.
McNabb said, “We’re just starting to understand the early positions” of a Trump presidency and a Republican-led Congress.
Buckley added that there’s been “a lot of speculation” of what will happen under a Trump presidency.
“We always caution people against speculation,” he said.
Don’t let events in Russia or a regime change in the U.S. affect investors’ asset allocation, Buckley said.
“[Investors’] asset allocation should be about what’s happening in [their] life,” he added.
McNabb added that the only time investors should change their allocation is if they have a dramatic change to their situation.
“We talk a lot about what’s going to happen in the next quarter or next 12 months – it’s actually not that valuable in terms of being an investor,” McNabb said. “You have to think long term.”