Why should we complain when
they choose stocks over bonds?
It's a big part of why investors who aren't afraid of a little risk
choose stocks over bonds.
Not exact matches
Additionally, 27 percent said they prefer bitcoin to
stocks; 30 percent would
choose bitcoin
over government
bonds; and 22 percent would
choose bitcoin
over real estate.
There are well
over a thousand mutual funds to
choose from and they represent a full range of industries and companies, from value or growth
stocks, small cap or large cap companies, to domestic or emerging markets, to
bonds and various cash equivalents.
Thus, your natural mix is 60 %
stocks, 30 %
bonds and 10 % cash, and you believe (using whatever market timing metric you
choose) that
stocks are
over priced, you would lower your allocation to
stocks and increase your allocation to either
bonds or cash.
What I am arguing is that
choosing the narrow area of the
bond market that did best
over the last 30 years — highest quality noncallable long debt, is not a fair comparison against the
stock market as a whole.
In fact, owning
bonds could be the key to you outperforming the market
over time, and all without having to spend hours of your time picking and
choosing individual
stocks.
Instead the account owner can add in up to a max of $ 200,000
over time and
choose where it gets invested — such as
stocks,
bonds, and money mutual funds.
When it comes to how to get to the portfolio mix you've
chosen, I know that most personal finance journalists and many advisers will say you should dollar - cost average, or move your inheritance money gradually into
stocks and
bonds, typically
over the course of a year.
And, with
over 2,000 ETFs available on the U.S.
stock and
bond markets, you'll have a lot to
choose from if you decide to make ETFs part of your long - term investment plan.