Generally the retort I hear when I mention that the stock market is over valued currently is that the alternative (bonds) are even more overvalued. So, let’s pretend there’s a theoretical payment vehicle that pays fixed rate monthly interest, does not lose principal value, and has a very high likelihood of making all the promises payments. (Such as a CD but with no FDIC limits.).
What interest rate and length of contract (1 year, 5 years, 30 years?) would you need to get in order to choose to decrease your current stock allocation by 10 percentage points (i.e. from 60% equity down to 50%, etc.)
What interest rate and length of contract (1 year, 5 years, 30 years?) would you need to get in order to choose to decrease your current stock allocation by 10 percentage points (i.e. from 60% equity down to 50%, etc.)