My blog entry about this:
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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:
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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.