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Wouldn't a prudent retiree have exited the market and experienced gains in their bond backed portfolio? Right now we're fueling a tsunami of moral hazard which
by 01100011 5y ago
Wouldn't a prudent retiree have exited the market and experienced gains in their bond backed portfolio?
Right now we're fueling a tsunami of moral hazard which will eventually bite us in the ass anyway. We're just prolonging the inevitable and making the crash even worse when it finally appears.
- vkou 5y agoInvestment orthodoxy recommends having ~50% stocks if you are retiring at 65, and are planning on living past 80. Cash/bonds lose value too fast. As for punting the problem back, no, that does not follow as a required consequence of QE.