Missing in the big Stocks versus Bonds debate that’s raging right now is the fact that there is always a middle ground. For investors, the stocks versus bonds question is almost never binary, rather it is a question of degrees – what percentage stocks, what percentage bonds?
So here’s my middle of the road compromise – both stocks AND bonds are pretty unattractive right now. Unless of course you compare them to real estate, in which case they shine like the top of the Chrysler Building :).
Many investors are sitting on a lot of cash right now for just this reason. They aren’t turned on by a bond market that has already run and offers very little other than interest rate risk at this juncture. They are also unimpressed with the growth outlook for US equities.
So while cash is trash and we are earning nothing on it, in these disinflationary times, who really cares?
There are as many reasons to abhor stocks as there are to dislike bonds. One asset class hasn’t been able to get out of its own way in a decade, the other is like a runaway freight train with investors willing to earn nothing just to be able to claim perceived safety.
Overall, two equally unattractive markets, but for very different reasons. Let’s end the stocks versus bonds debate and just agree that we don’t much love either of them at this moment.
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
… [Trackback]
[…] Find More Info here on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] There you can find 90366 more Info on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Read More here on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More on to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Here you can find 43993 more Information to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Read More here to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Information to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More here on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] There you can find 48637 more Information to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More Information here on that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]
… [Trackback]
[…] Find More here to that Topic: thereformedbroker.com/2010/08/20/stocks-are-from-mars-bonds-are-from-venus/ […]