Should You Be Looking at Bonds Rather Than Stocks?

Estimated read time 3 min read


With the S&P 500 index having dropped 18% this year, conventional wisdom has it that you should take advantage of the opportunity to buy stocks at bargain prices.

But at least for investors over 60, you can make a case for buying bonds — bonds you will hold to maturity, that is.

Stocks can bounce back at any time. But they also could produce zero return for the next 10 years, as they did from 2000 to 2010.

Some of that would simply represent a reversion to the mean. The S&P 500 has returned an annualized 13.94% over the past 10 years, above the 10.5% return the index generated from its inception in 1957 through 2021.





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