The world’s second-largest fund manager has warned that the era of super-sized stock market gains is coming to an end. Tim Buckley, the new chief executive of Vanguard, said investors would have to accept lower returns in the future than they have enjoyed in the past. After a nine-year bull run, share valuations had become “stretched”, and it would not be a “surprise” if there were further market falls, he said. The warning from the boss of Vanguard, which manages $4.9 trillion (£3.54 trillion) of investors’ cash, came as global stock markets suffered their steepest falls in years. Last week the Dow Jones Industrial Average lost 5.2% of its value and is down nearly 10% from last month’s all-time high. The FTSE 100, meanwhile, tumbled
Vanguard CEO Tim Buckley has warned that investors may have to settle for lower returns in the future as a nine-year bull run in equities looks set to end. Buckley, recently appointed to head the world's second-largest fund manager, said valuations had become stretched, adding "if there is a correction, I wouldn’t be surprised". A stocks rout in the first week of February wiped 5.2% from the value of the The Dow Jones Industrial Average.