Vanguard CEO McNabb warns of 'decent-sized' market correction

£3.5trn asset manager

Vanguard chairman and CEO Bill McNabb has warned markets could see a "decent-sized correction" following recent record highs.

In an interview with the BBC's Radio 4 programme, McNabb said he felt valuations were "very high".  However, he disputed they were in bubble territory.  Markets in the UK and US including the FTSE 100, Nasdaq and S&P 500 have reached record highs in recent months. As a result, he said markets could fall back again and the return on equities could fall from 9% to 6%.  "We expect there could be a decent-sized correction at some point," he said. McNabb has worked as chief executive of Vanguard, which has £3.5trn in assets under management, since 2008 but will step down from his ...