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You are comparing the S&P 500 to a single company bond? Should I also compare the return of a SpaceX stock to the S&P 500?

• mrcode007 3y ago
  you can build a portfolio of bonds that satisfy your risk preference and target yield. bonds can also be leveraged a lot which is how they are the largest financial market in the world trumping stocks by few orders of magnitude. a return of 8-9% on broad market index like SPX in a year when the market made 20% profit tells me you're very risk averse.
  • cj 3y ago
    (Stupid question) how does someone, who is not risk averse, go about executing the strategy you’re advocating for? Are Barclays bonds available for purchase via a consumer brokerage account?
    • mrcode007 3y ago
      You can browse bonds in Schwab and interactive Brokers for example. Fwiw I am not saying to go and buy Barclays bonds, but merely exposing the fact that a market far larger than the stock market exists. Edit: one thing worth pointing out is that there are also municipal bonds which are tax free if you live in the jurisdiction of the issuer. https://www.municipalbonds.com/bonds/issue/79771PU86/ https://www.municipalbonds.com/bonds/issue/79771PU86/ Here’s an example of the SF muni bond at 8.4% coupon currently yielding ~6%