If I maintain this level of monthly contribution, which I think I will unless somethings extraordinary happens, and my goal is to have, for example, half a million dollars in this portfolio by the time I retire, can I reach my goal if I keep the allocation intact, which overwhelmingly
favors stocks over bonds (43 % in foreign stock, 42 % in domestic stock, 9 % in cash and 6 % in bond)?
Equity gains will likely moderate from 2017, but we continue to
favor stocks over bonds.
That means
favoring stocks over bonds and buying a home rather than renting.
But relative risk premiums still
favor stocks over bonds.
Not exact matches
Over time the funds typically decrease holding of
stocks in
favor of less volatile investments such as
bonds, inflation - protected securities and the least volatile of them all — cash.
We have been in a long period during which
stocks have been
favored over bonds.
David Rosenberg
favors high quality
bonds over stocks in this environment, which is notable given the low yields.
Over time the funds typically decrease holding of
stocks in
favor of less volatile investments such as
bonds, inflation - protected securities and the least volatile of them all — cash.
For important investment goals, investors tend to prefer conservative investment strategies, and they
favor bonds over stocks, (the amount by which they do so would, of course, depend on the extent of their loss aversion), while for very ambitious goals, investors are willing to take more risk.
For example, looking at the graph above, if you decide to rebalance away from
stocks and back toward
bonds after a period of 10 years, you're making an implicit market - timing decision to
favor bonds over stocks in the next period (however long that may be).
Now's the time to
favor bonds, particularly long - term
bonds,
over stocks.
The index looked at the relationship between buying a property and building wealth through a buildup of equity versus renting a comparable property and investing in a portfolio of
stocks and
bonds, and concluded that «In terms of wealth creation, the U.S. housing market, when considered as a whole, has swung marginally more in
favor of home ownership
over renting a comparable property and investing monthly rent savings in a portfolio of
stocks and
bonds.»
In terms of wealth creation, the U.S. housing market, when considered as a whole, has swung marginally more in
favor of homeownership
over renting a comparable property and investing monthly rent savings in a portfolio of
stocks and
bonds.