Story highlights John C. Bogle, founder of the Vanguard Group, talks with CNN's Michael Smerconish

The 87-year-old said he thinks wealth inequality is bad for the economy, society

However, Bogle said he thought capitalism was still "the best way to run an economy"

(CNN) Legendary investor John C. Bogle, founder and former chairman of the Vanguard Group, gave his verdict on the state of the markets Saturday, urging Americans to put their faith in "economics" rather than "emotions."

Asked by CNN's Michael Smerconish about why the disconnect exists between today's strong markets and the unstable political climate, the 87-year-old Bogle said the answer is simple.

"I think the answer to that is it's driven by near-term hopes for big budget cuts and big tax cuts, particularly corporate tax cuts, which will automatically raise corporate earnings, and the market likes that," he said.

There's also, Bogle suggested, "a feeling of bullishness in the air."

"Don't ask me quite why but when the feelings are out there, when the emotions are out there, they override the economics in the market," he explained.

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