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You have to take the much longer view when you talk about the merits of investing pensions or SS in stocks. The compounding affects of a broad S&P portfolio wil
by hop 16y ago
You have to take the much longer view when you talk about the merits of investing pensions or SS in stocks. The compounding affects of a broad S&P portfolio will destroy an all bond portfolio in a 20-30 time frame.
And now that we are printing all this money and have massive unfunded liabilities, there will be serious inflation in the next 20 years - I have no idea when, but bond yields will drop or become negative at some point while equities will perform much better. And this is Charlie Munger and Warren Buffett's view as well.
- fr0sty 16y ago> there will be serious inflation in the next 20 years - I have no idea when, but bond yields will drop or become negative at some point. These two statements are contradictory. Bond yields will skyrocket in the face of inflation. If you meant bond prices (which move inversely to yields) then you would be correct but your assertion, as presented, is false. Also, please pick a 20-30 year timeframe in the last century where investment in bonds (for the entire period) would have underperformed (be destroyed, in your words) the S&P 500 for the same period.