Wednesday, July 22, 2009

All-bond allocation unwise despite equity jitters, says Ibbotson

A short article noting that while bond and stock returns were both about 8.5% over the past 40 years, expected future bond returns are 3 to 4% (annually) due to low current interest rates. A balanced portfolio of 60% stocks and 40% bonds returned 9.1% over the same 40 year period.

Read the entire article:
http://tinyurl.com/n5t8ny

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