Link to article at WSJ:
Link to my blog where I made the following comments on it:
Another excellent op-ed piece by Burton Malkiel, author of the classic
"A Random Walk Down Wall Street".
Malkiel makes the following points (summarized - but you should really
read the article):
Bonds, especially US and Europe, are not positioned to do very well
in the future
Stocks, especially the US and Emerging Markets are
Emerging Markets, in general but especially Brazil and China and
even India look good (natural resources, demographics, etc)
Single-family houses in the US are less expensive and with ultra-low
mortgage rates (see "Bonds" above -- a mortgage is the opposite side
of buying a bond - it's borrowing rather than lending!) look good.
("Housing affordability has never been better." Though, of course,
that's contingent on good credit and probably a job.)
Costs matter - this was the final paragraph and it's always worth
repeating: "Control the thing you can control -- minimize investment
costs. That is especially important in a low-return environment.
Make low-cost index mutual funds or ETFs the core of your portfolio
and ensure that any actively-managed investment funds you purchase
are low-expense as well."
- posted 8 years ago