Not exact matches
From tax reform and double - digit
stock market returns to
big corporate mergers, last year was an eventful one for our money.
If you want to ensure you get the
big returns from stocks that investment writers highlight when urging you to invest in equities, you need to buy during bear
markets to make up for the lousy
returns from those years when you buy at what proves to be the top of a bull
market.
Both bonds and timing gave me a lot of defense in 2008 but bonds and timing will keep me
from capturing the
big returns of an extended bull
market in
stocks.
The rationale is that by starting out with a more conservative mix better protects your portfolio
from being decimated by
big stock market downturns or subpar
returns early in retirement a rising equity glide path reduces the risk that you'll run through your savings too soon.
Also there's an international impact too where people overseas are mostly buying in
big coastal cities like SF, LA, NYC, etc. — re: oppt cost with
stocks, one thing I keep hearing again and again is that in today's
market with interest rates at record lows (98 % percentile compared to all of history), we can not just expect the same 6 - 7 % real
return from stocks going forward, and that is will be a lot lower than that.
They're also relatively protected
from the
stock market; while you won't get as
big of
returns as other types of investments, they're more consistent.