Stocks or Bonds

Discussion in 'The Pub' started by AZChilicat, Mar 20, 2015.

  1. AZChilicat

    AZChilicat Member

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    I have often wondered which investment was superior and I think this is the place to explain to me which I should own. Thank you in advance for your explanations.
     
  2. Skeet skeet!

    Skeet skeet! Member

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    Investments should do one thing and one thing only: rock hard.
     
  3. skronker

    skronker 2010/2013/2015 S.C. Champions Gold Supporting Member

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    send all of your money to me and sign over power of attorney

    then i will tell you how to invest your money
     
  4. Echoes

    Echoes Senior Member

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  5. RhytmEarl

    RhytmEarl Member

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    Is this a veiled S&M thread?
     
  6. stealthtastic

    stealthtastic Supporting Member

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    Everyone's portfolio will differ based on their needs.

    Typically, the younger you are, the less your portfolio is composed of bonds as you won't be retiring for a while.

    Anyways, not really a question you should be asking a forum.
     
  7. derekd

    derekd Supporting Member

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    Tough call. People like the relative stability of bonds over the potential volatility of stocks, until you take that 3% average inflation off the top. Bonds don't look quite as appealing then.

    Depends on your goals, age, and how much risk you can stomach, right?
     
  8. skronker

    skronker 2010/2013/2015 S.C. Champions Gold Supporting Member

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    yeah those who think he's serious are the tortured ones
     
  9. VCuomo

    VCuomo Member

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    Right now there's not much return in safe bonds. Much better returns in stocks, although there's usually more risk. So it's really your call based on your risk tolerance.

    And why are you asking about one "or" the other? Balance your portfolio and invest in both.

    But I suppose the real answer to your question is that at times bonds have had better returns vs. stocks, and at times the opposite has been true. Right now stocks have the edge.
     
  10. bgmacaw

    bgmacaw Member

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    I invest in Indexed ETFs (Exchange Traded Funds) and Commercial Property REITs (Real Estate Investment Trust). These are long term investments that run more or less on automatic. I won't be touching them for several more years as long as there aren't any surprises.

    I dabbled in stocks and such years ago, lost a lot of money, and learned my lesson. But, I might do it again, but only if it's with money I'd be equally willing to put in play at the tables in Vegas.
     
  11. AaeCee

    AaeCee Member

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    You need to always own some of own each, but the how, which, and when is where the hard work is done, and as a professional in the field I'll tell you that those decisions are best left to a seasoned pro. Very few others have a chance of consistently getting it right over the long term.
     
  12. GovernorSilver

    GovernorSilver Member

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    A mix of both. If your employer offers a 401k or 403b, one of the options might be a Target 2XXX type account, where 2XXX is the year you expect to retire. That type of account will automatically rebalance your stock and bond investments every year. The closer you are to retirement, the more you investment you want in bonds and less in stocks. The further away, the more you would have in stocks and less in bonds. Gross oversimplification of course.
     
  13. Doug's Tubes

    Doug's Tubes Member

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    In order to amass a small fortune, you first need to start out with a large one.
     
  14. MVrider

    MVrider Member

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    Kind of like making a million in the music business. Start out with two or three.
     
  15. sixty2strat

    sixty2strat Member

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    Right now bonds are not strong. I have some older ones that are at 8% YES I said 8 and will mature soon. New ones are a fraction, considering the Fed is at 0% money is cheap to borrow so no one will be paying much, Same with CD's last rate I was quoted was, .25% a few years ago. Good solid stocks diversified for a long term investment are smart, but my gut says the time to buy has passed, the last 4 years have been amazing, I hold my cash and see how things turn out in the next 6 months when the Fed will raise rates, might be the time to buy then.
     
  16. Scafeets

    Scafeets Silver Supporting Member

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    Invest a few bucks in William Bernstein's Investor's Manifesto. A great, no-BS quick read that will give you way better advice than all us gear-heads could possibly relate.
     
  17. AZChilicat

    AZChilicat Member

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    I bought some bonds that have 0% interest rates. Was this a mistake?
     
  18. bluwoodsman

    bluwoodsman Member

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    Stocks or bonds, individual holdings are not a great idea unless you have your base investment needs covered and want to play around. Hold them in much more broadly diversified mutual funds which are safer and have cheaper fees.
     
  19. Greggy

    Greggy Member

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    So many investors have run to safety and bought bonds, and thus the current low rates of returns. The relevant risk today in bonds is interest rate risk. Two future events are important. Rising inflation and a systematic move out of bonds and into equities. Both will tank the bond market for those that currently hold bonds.
     
  20. AZChilicat

    AZChilicat Member

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    So these bonds I bought that return 0% interest were not a good idea?
     

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