Home>In or Out? The Case for and Against the Stock Market
In or Out? The Case for and Against the Stock Market
Perspectives Content Submission
Thu, 1 Nov 2012
Published with permission from Knowledge @ Wharton , Wharton’s online business journal. The stock markets climbed all summer, and were nearing record highs before the Dow Jones Industrial Average fell 243.36 points on Tuesday, down almost 4% from a five-year peak. Yet even before the drop, many in…
Portfolio Solutions' Rick Ferri expects stocks to return 7% and bonds to yield 2% during the next decade, and he also offers tips on how investors should handle their fixed-income positions.
Vanguard's chief economist, Joe Davis, cautions investors who turn to equities to replace bond income and also offers some vehicles for short- and long-term inflation protection.
October data show continued inflows forbonds (including riskier fixed-income assets), while investors withdrew money from U.S. stock mutualfunds and ETFs .