Conventional investing wisdom indicates that with a long time horizon, equities render a higher return
than other asset classes such as bonds.
Not exact matches
Those returns were incredibly volatile — a stock might be down 30 % one year and up 50 % the next — but the power of owning a well - diversified portfolio of incredible businesses that churn out real profit, firms
such as Coca - Cola, Walt Disney, Procter & Gamble, and Johnson & Johnson, has rewarded owners far more lucratively
than bonds, real estate, cash equivalents, certificates of deposit and money markets, gold and gold coins, silver, art, or most
other asset classes.
In short, the practice is nothing more
than moving an investor's money into different
asset classes such as stocks, bonds, mutual funds, real estate, gold,
other commodities, international firms, fine art, etc..
But just keep in mind that the stock market has a lot of ups and downs, and the risk of loss is much higher with stocks
than with
other asset classes such as bonds or cash.
«Hotels are
such a different
asset than any
other class of real estate,» Marre says.