I like stocks over bonds in the long term.
Not exact matches
It looks
like you are right, but I'd contend a
stock /
bond portfolio risk is worth the extra percentage points you'd gain
over 30 + years (there will be more volatility).
You control the allocation of your money into various investment assets,
like stocks,
bonds, mutual funds, and money market accounts, and the money grows
over time until you retire.
While I believe markets are efficient when it comes to
stocks,
bonds, currencies and commodities and reflect all known information at the time, in the case of bitcoin, and a few other instances
like the ONLY
stock I've bought in
over a year (now up big), when I start to see the mainstream media reporting on something, google search volume through the roof (chart below) and lastly, when your mom asks about it — it may be signaling mainstream acceptance and further expansion of a major bubble.
Rosamund Pike might be a stronger actress, but she feels
like she has been looking
over what the last 19 films of
Bond girls had done, rather than finding an original take on the
stock character.
Risky investments
like stocks often have boatloads of short - term volatility but always outperform less - risky assets (
like bonds)
over the long - term.
Yes, I
like having the past on my side, but my own portfolio is a combination of
over 12,000
stocks (through index funds)-- approximately half in
stocks, half in
bonds, half in growth, half in value, half in large, half in small, half in international, half in U.S. half in buy and hold and half in market timing.
Small cap
stocks, small company
stocks, merging market
stocks and the
like and then maybe have a little bit fewer
bonds over there.
-- The Four Pillars of Investing is quite good too — The Wealth Barber is a (kind of dated) Canadian Classic — For a more sophisticated look at
over all investment, I
like «Are you a
Stock or a
Bond?»
For those who prefer managed mutual funds
over index funds, your best approach is to go to a review site
like Morningstar or Zacks to see which of the funds that pursue what you have in mind (e.g., foreign
stocks, domestic
bonds, etc.) perform the best.
The
stock market has,
over time, consistently provided investors with higher returns than «safer» investments
like certificates of deposits and
bonds — but there are also risks because buying
stocks means acquiring an ownership interest in companies.
A preferred
stock gets priority in receiving dividends and precedence
over common stockholders (after
bond holders and other creditors though) in the event of a liquidation of corporate assets (
like in a bankruptcy).
But considering today's low interest rates and relatively rich
stock valuations, I'd say it would be foolish to count on returns anything
like those of the recent past or, for that matter, even the roughly 10 % annual gains for
stocks and 5 % for
bonds over the past 90 or so years.
Since index funds simply buy the
stocks or
bonds that make up indexes
like the Standard & Poor's 500 or Barclays U.S. Aggregate
bond index rather than spend millions on costly research and manpower to identify which securities might perform best, they're able to pass those savings along to shareholders in the form of lower annual fees, which translates to higher returns and more wealth
over the long term.
Over the final 20 years before you quit the workforce, you might move from 80 %
stocks to more
like 50 %, with the balance going into
bonds — typically U.S.
bonds.
Also,
like the Fortune column points out, the thesis that interest rates will inevitably rise, so
bonds are a bad idea but
stocks are now undervalued because of wide premiums
over bonds is seriously flawed because if
bond yields rise, it will be bad for
bonds but the equity premium will drop as well, so it may not be necessarily good for
stocks.
The difference here is that these shift
over time, moving your money from more risky things
like stocks into less risky things
like bonds as you reach retirement and start withdrawing.
But because of the limits features
like participation rates and caps place on returns, the value of your annuity may grow much more slowly
over the long run than had you simply put some of your money in cash and / or short - term
bond funds for security and the rest in low - cost
stock index funds.
If you are happy holding onto
stocks, knowing that the best scenario from past history would be slightly
over 3400 on the S&P 500 in 2028, then why not buy a
bond index fund like iShares Core Total U.S. Bond Market ETF (NYSEARCA: AGG) or the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA: LQD) that could virtually guarantee something near that outc
bond index fund
like iShares Core Total U.S.
Bond Market ETF (NYSEARCA: AGG) or the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA: LQD) that could virtually guarantee something near that outc
Bond Market ETF (NYSEARCA: AGG) or the iShares iBoxx $ Investment Grade Corporate
Bond ETF (NYSEARCA: LQD) that could virtually guarantee something near that outc
Bond ETF (NYSEARCA: LQD) that could virtually guarantee something near that outcome?
Leggio: So John, it really sounds
like bond investors and
stock investors really need to be not only resilient, but really need to keep an eye on market conditions
over the next few years.
They hold assets
like stocks, commodities or
bonds close to their Net Set Values
over the course of the trading day.
Major cryptocurrencies
like Bitcoin, Ethereum and Litecoin have massively increased in value
over the year, effectively outperforming investments
like stocks, commodities, and
bonds.
Over the course of the past week or so I have spent lots of time thinking and writing about how cryptocurrencies represent solid value relative to
stocks,
bonds and other commodities
like gold or oil.