Squawk Box Financial Summit: The Markets - CNBC.com

Around 2:50 into the video, John Bogle was asked about his outlook next year.

Two points within Bogle's comments worth review:

• Cited low dividend yield and high PE multiple as a hindrance to future returns. He's right. The equity market despite being well below the its nominal 2000 & 2007 highs cannot be classified as cheap. Real DY, real PE, and equities priced in gold suggest that the market is not done adjusting.

Nominal S&P 500 Relative to 2000 & 2007:

Real PE 10-Year Avg:

Real DY 10 Year Avg:

S&P 500 to Gold Ratio:

• He also suggested that predicting stock market performance was a coin flip because it can diverge substantially from actually business conditions. The reason is that devaluation/liquidity rather improving economic demand can also drive up asset prices. German's Wiemar Republic equity performance provides an classic illustration of the effect of devaluation on equity prices.

Nominal Wiemar Republic Equities:

Video: Squawk Box Financial Summit: The Markets - CNBC.com