Monday, October 1, 2012 - 9:02 PM
For those who missed it, the results for Q3 are in. Bond funds did well, stock funds did much better, CDs flat-lined.
While I understand the reluctance of some to plunk any money whatsoever into equities, it would appear that any rational investor would re-visit that idea from time to time. Regrettably, most often, the idea is revisited when stocks have peaked (as now?) and fixed-income yields have tanked.
Perhaps the obvious "middle ground" is to select an age-appropriate asset allocation, re-balance periodically, and let Mr Market have fun. If you want to trade stocks, that's fine, but limit your gambling to 5% of investable assets. The bulk of equity investments should be in low-cost index funds.
FWIW, as most here know, I prefer a longish CD ladder to bond funds, but own both. I have 100 minus age in equities (aka "age-in-bonds"). This year has been kind thus far.
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Feb 14, 2011
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