(laughing) >> smith: for the past four decades, jack bogle has been preaching the gospel of long-termow-cost investing through index funds. >> get wall street out of the equation. get trading out of the equation. get management fees out of the equation. you own american business and you hold it forever: that's what indexing is. own a fund that owns the entire u.s. stock market, does no trading, and has a cost of one percent a year to own. and that is the only way to do it. then you are the creature of the market and not of the casino. >> smith: index funds buy and hold a broadly diversified basket of stocks that match the holdings of a market index: the s&p 500, the wilshire 5000, or maybe a bond or commodity index. they don't eliminate market risk, they ride the market up and down, but they are much cheaper because there is no active manager. you can guarantee to the sharehold that they will capture their fair share of the stock market's return, for better or for worse. if you want to gamble with your retirement money, all i can say is be my guest. but be aware of the mathematical re

jack bogle seen a lot of markets in his career. the vanguard group chairman and founder joins us live from headquarters in pennsylvania. nice to have you back on the show. welcome. >> good to be with you. good afternoon. >> you know, i had somebody last week tweet out that it feels like 1999 all over, we are frothy. nasdaq's back above 3500. the russell breaks 1,000 for the first time. the dow at a 2250 points added already. one of the best performances of a year ever and we're only in may. what do you say? >> oh, well, first, comparisons with 1990 are to be quite blunt about it absurd. in late 1999, the price earnings multiple of the s&p got very close to 40 times earnings, maybe 36 times earnings. >> mr. bogle, forgive me for a moment. we're following this story, as well. a first commercial flight of a dreamliner back in the air for american airlines houston to chicago. just taken off here and our own phil lebeau is on board that flight along with the ceos of united and boeing, as well. i'm sure phil will have a report later in t

my guest next week, mutual fund legend jack bogle of vanguard. each week keep it right here where we are, "on the money." have a great week, everybody. >> this weekend on "extra" -- kim kardashian ready to pop, and melting down. >> how the [beep] did i get like this? >> why her sister khloe is lashing out to defend kim today. >> i do find it disgusting. >> brad pitt making his first public appearance since angelina's surgery secret. >> want to thank you all for coming out tonight. >> and "extra" with the new dance champ kellie pickler. >> plus, judge bruno is here, the right person to win the title this year. >> the one and only madonna, her one and only interview. >> trey, i'm only talking to you. >> from her age defying body at 54. >> is that how old i am? >> to her daughter dating. and her famous feud with elto

my guest next week, mutual fund legend jack bogle of vanguard. each week keep it right here where we are, "on the money." have a great week, everybody. i'll see you aga hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! ♪ wow. [ buzz ] delicious, right? yeah. it's the honey, it makes it taste so... ♪ well, would you look at the time... what's the rush? bee happy. bee healthy. with clusters of flakes and o's. oh, ho ho... it's the honey sweetness. i...i mean, you...love. >> this is "the chris matthews show." >> ask not what your country can do for you. >> tear down this wall. >> i can hear you. >> the time for change has come. chris: a president known by a letter. in shorthand he's w. and what we know of him even now is an open question. what was his impact? who was really setting the lead? were those his hands on the wheel? or vice president cheney's? were his moves his own? or reactions to what his father did? or didn't do? father and son? did george w. bush's confidence come simply

market legend jack bogle on whether this is 1999 all over again and a big week ahead on retail earningskelly. see you in 15 minutes. >>> news of the morning of course is yahoo! buying tumblr for $1.1 billion. tumblr ceo david carp assuring users the acquisition will not change the user experience. julia bor sten sfopoke with himn 011. >> if we put one crappy ad on our home page, tomorrow we would be wildly profitable. that was, you know, definitely, you know, backup plan z. that's nothing we would never want to do and something we think would compromise the integrity of our product. >> interesting. before this weekend, chances are you didn't know much about david karp but now he is practically a household name, at least this these parts. robert frank has more on karp's journey to his success and dad's per expect. >> i've i just spoke to david's father michael karp, very proud dad today. he said david is, quote, thrilled. he said, quote, he's extremely passionate about what he does. es r he's going to keep on doing what he's been doing. the deal will net david somewhere around $200 milli