Other
popular bond and equities funds, including the Fidelity Contrafund, Vanguard Total Bond Market Index and Vanguard 500 Index, have all produced solid returns in recent years.
Not exact matches
To maintain the balance of their portfolios, pension fund managers have been selling
equities and buying more
bonds,
and their notable demand for the latter counters the
popular narrative that the 35 - year rally in fixed income is over.
One
popular valuation metric, the
Equity Risk Premium (ERP), can be useful in assessing both relative returns
and the right mix of stocks versus
bonds.
The most
popular reasoning behind the
equities and bonds allocation is age but I also disagree with that rational as I previously talked about in a guest post I did over at GenYFinanceGuy.
Age - based investment options are often a
popular choice among families saving for college with a 529 plan because they reallocate a percentage of assets out of
equity - based funds (which have more stocks) into more conservative, income - seeking funds (such as
bond and money market funds) over time.
A
popular belief is that younger individuals should invest more in
equities (stocks)
and older people should buy more
bonds.
A
popular mix would be 60 %
equities, 30 %
bonds,
and 10 % cash.