Whether Bill Gross says the cult of equities is dead or not, it's really not all that important,...

|By:, SA News Editor

Whether Bill Gross says the cult of equities is dead or not, it's really not all that important, says Vanguard founder Jack Bogle. What's important to understand, is that "Equities don’t create one darn thing. They reflect what business creates.” Business will go on creating. He notes that in 1979, BusinessWeek made the same argument as Gross — just before the start of a major bull market. Bogle doesn't see any major bull run materializing right now, however, he recommends maintaining an "intelligent asset allocation between stocks and bonds.”