Stocks vs. Bonds, Revisited

{ Posted on Mar 30 2009 by Minyanville }
Why Bother with Bonds? Investors we're told demand a risk premium for investing in stocks rather than bonds. But if stocks outperform bonds by as much as 5% over the long run then for our truly long-term money why should we bother with bonds? Why not just ignore the volatility and collect the increased risk premium from stocks? That's the message of those who believe in "stocks for the long run" - and also from those who want you to invest in their long-only mutual fund or managed-account program. Indeed it's always a good day to buy their fund. ...

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