Are stock/stock funds still attractive?

[pb4uski]

+1 I have confidence in my 60/40 AA and am staying the course.

 

[photoguy]

Following our AA. But mostly new money in equities has been going into various international funds which have lower valuations.

 

[target2019]

Unless the opportunity you're waiting for doesn't show for a very long time...

I think you've hit it on the head. Some of the posts are from early 2014, and some from April. So, if you have cash and are waiting for something to become less expensive, your cash is still not doing anything for you.

I've taken some of the cash that's been building for us, and will soon get into positions on specific companies I've identified for trades.

 

[slazenger]

Have you you changed your investment strategy, stayed the course?

I started putting new money into cash.

If your asking is the equity risk premium is still there, then yes. If I assume you're investing in smart cash equivalents (high paying savings accounts, CDs, or IBonds), then you're going to roughly keep pace with current inflation, if not slightly lag it, at worse.

Even at current prices, US stocks should pay on average ~ 2-4% real, depending on the valuation metric. If you're willing to consider foreign stock, including emerging market, you can maybe add a couple more percent to that taking into account depressed foreign stock valuations.

In short, stocks (especially US) likely wont pay what they did in the past. But at current low interest rates, it'll still beat cash, long-term. I'm going to side with Warren B. here per his interview in 2013, that bonds (and I'm assuming he include cash) are just plain lousy investments. These are best used to park money that will be spent within 5 yrs.

Stocks, essentially have to pay more than cash does. Otherwise, no one would buy them.

 

[GregfromTexas]

Anyone use the paid version of Morningstar for stock and fund analysis ? I am thinking about getting a subscription .

Do you have a brokerage account? I get a lot of the Morningstar data for free by grace of using Fidelity. I wouldn't be surprised if others have it as well.