Stocks Are Still Better Than Bonds
I read a good article on MSN Money today that seemed to echo what I said last week in my post about risk. Apparently Jim Juback reads my blog and must be getting ideas from me (of course I’m kidding, probably). Here’s a quote from his article:
“My argument breaks down into two main parts. First, the same macro trends that are almost uniformly negative for bonds have some undeniable upside for stocks. And second, the structural problems in today’s bond market that will drive down bond prices in the next bond panic are largely irrelevant to stocks.”
Instead of repeating all of his points, I suggest taking the time to read his full article. My point is as we continue to get the random jitters from the fluctuating bond yield, stocks are still a better buy than bonds.
Technorati Tags: investing, stocks, options, covered calls, trade, bonds
Comment by Kadena
Even if bonds are at their highest rates of return, it will always be fixed. So when they talk about average stock returns, remember sometimes we make more, sometimes less. Why would anyone want to give up the chance for more, by “locking” in average rates of return in bonds? Seems to me that what appears equal at first sight may not really be equal. Throw in dividends and covered calls, and is it even close? Of course, you don’t want to pick bottom of the barrel stocks, tongue in cheek! And, you must buy and sell properly. Too much maintenance for people.