REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Here is a guy who turns conventional wisdom on its head:
He's pretty gloomy about the anticipated return on equities, quoting Bill Gross and his prediction of sub-two percent annual returns over the next decade.
In case these prognosticators are wrong (as they usually are), I'd advise any young investor to follow a balanced AA including both stocks and bonds.
Youngsters should buy bonds now, stocks laterI would tell a young investor to avoid stocks altogether and invest in a carefully selected portfolio of corporate bonds. Not bond funds, but individual corporate bonds.
Here's the reasoning. Because there is a significant chance that investment returns could be virtually nil, or even negative, over the next decade, a young investor should seriously consider seeking the next-best alternative. Ideally, this alternative would be characterized by a reasonable chance of capital preservation while returning a rate closer to the historical return on stocks. It isn't likely going to be found in the debt of sovereigns, but it might well be found in the investment-grade debt of corporations.
He's pretty gloomy about the anticipated return on equities, quoting Bill Gross and his prediction of sub-two percent annual returns over the next decade.
In case these prognosticators are wrong (as they usually are), I'd advise any young investor to follow a balanced AA including both stocks and bonds.