There will be profound changes in the way investors look at the world going forward, Vanguard CEO Bill McNabb told Reuters.
McNabb said: We are going to see a return to higher savings rates and much more focus on diversification [and] balanced funds, including alternative and international assets.
Strong demand for set-it-and-forget-it target-date funds will continue. They dont insulate you fully from a downturn, the Vanguard CEO said, but they protect you from a dramatic downturn.
McNabb also believes smaller, independent asset managers will be acquired by larger firms.