Sorry. You either have never invested in the stock market or you have a very short memory.
For folks who will actively manage their investments, even once retired, volatility is also a useful tool.
Sure. Every retired person I know loves to see his account decrease by 20% every now and then. It keeps them young at heart.
For the long haul, inflation is a serious risk for any type of fixed income asset.
Try ANY asset. If inflation robs you of purchasing power the assets themselves lose that power. Even stocks.
However, more often, rates don't provide that margin.
Please show me a time when real bond yields were negative.
As for me, these "lies" have served me well for 20 years, including through the collapse in 1987, and the recent bear market.
You say you like volatility. You say investing in stocks is the only smart choice. Yet you imply that you sailed through the recent bear market with ease. Uh huh. Forgive me for being more than just a little skeptical.
Anyway, I have a question.
Not enough information. Does he need to make another 25 million for some reason?
Dear groanup,
I caught your post as I was wrapping up other work. Forgive me if I don't respond anymore today.
"You say investing in stocks is the only smart choice."
No, I never said that at all. Here's one instance of what I actually said:
"Most folks with that kind of money invest in various types of equities, some bonds, some other types of debt instruments, and real estate. Investment in equities will yield a total return, on average, of around 10% annually, for the long-haul."
I'll add to that comment so you can better understand my views: How an investor allocates his assets will depend on his individual circumstances. For some folks, a portfolio heavier on bonds will be appropriate, for others, it won't be. I even conceded that for an 85 year old fellow on death's door, perhaps even all tax-free bonds might be appropriate.
However, for most folks, including most wealthy folks, equities are, and will remain an important part of the asset allocation picture.
"Not enough information. Does he need to make another 25 million for some reason?"
No.
"Yet you imply that you sailed through the recent bear market with ease."
Nah, it was a tough road. But I certainly didn't lose anything approaching what the Dow lost, or the S&P 500, or especially what the NASDAQ lost.
Then again, I really didn't get into the whole "dotcom" thing. So, I didn't have stocks that seemingly grew to the trees prior to the bear market, either.
And interestingly, although I'm not currently invested for income, the amount of income I received in dividends rose during that period.
sitetest