Malkiel: Buy Stocks, not Bonds

My blog entry about this:
formatting link

Burton Malkiel has been speaking up a lot lately, and with much the
same message ? repeated several times over the last few months (at
least since an op-ed back in April).  While hitting on some of the same
themes he?s hit on for 40 years (index funds, low costs, broad
diversification, don?t time the market, don?t overpay for active
management), he?s been focusing lately on the state of the bond market.
In today's WSJ, in an op-ed piece, he again makes the case for equities
instead of bonds, for low-cost index funds, and talks about how the
market properly handled the recent Knight Capital trading disaster.
The WSJ op-ed piece itself:
formatting link

And the first paragragh of the WSJ piece:
The stock market continues to reflect the very modest economic recovery
> now under way in the United States. From January 2011 through
> mid-August 2012, the S&P 500 has produced moderate single-digit total
> returns. But many individual investors are not participating. Some $200
> billion has flowed out of equity mutual funds since January 2011. Even
> more has flowed into bond funds, leading bond king Bill Gross to
> proclaim ?the cult of equity is dying.? Yet I believe that investors
> who pull their money out of the stock market today to invest in bonds
> are making a huge mistake.
Reply to
David S Meyers CFP

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.