Which will do better over the next 20 years: large cap or small cap stocks? Growth or value? Paul Merriman is calling out John Bogle on his recent prediction that the answer is large caps and growth stocks.
If you missed it, in a Q&A published in the November/December issue of the Journal of Indexes and posted online here, Bogle offered to bet $5 that over the next 20 years, large caps will do better than small caps and growth stocks will do better than value stocks, “because the market is such a great arbitrage mechanism between the past and the future.”
In an open letter to Bogle posted on Merriman’s MarketWatch blog, the “retired” Merriman calls out the “retired” octogenarian on his prediction and takes him up on the wager. Both offer solid rationales for their differing takes, as well as some interesting food for thought. And you gotta love an 85-year-old guy offering a bet that pays off in 2034.
This clash of the titans just cries out for a robust discussion in the comment thread below. Which side are you on?
