Posted on 01/08/2008 2:52:49 PM PST by shrinkermd
Agree. Take the Vanguard Wellington Fund, for example. It is basically an index of value stocks and high quality corporates & treasuries, in roughly a 2:1 ratio of stocks to bonds.
The fund started in July 1929(!), and has returned about 8.5% per year on average over nearly 70 years.
Personally, I invest monthly amounts into the Vanguard Total Stock Market Index fund and their GNMA fund, at about at a 1:1 ratio. Such index investing is simple, cheap, and has proved itself over long periods of time.
SOMEBODY DO SOMETHING!! QUICK!!
Wait! On second thought... aren't corrections and bear markets part of the normal stock market cycle?
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