That’s no reason to tell someone with hundreds of thousands of dollars to put half of it in bonds.
As a matter of empirical observation, rich people with millions of dollars do NOT keep them all in equties and, in fact, tend to allocate a chunk of their wealth to bonds. How large a chunk is debatable.
The US stock market? No, it hasn’t. I checked a graph of it before writing that. “Time the market is down” is not the time between peaks on the graph. It’s the time between periods when stocks are a better investment than bonds. For the Great Depression, that was 3 years.
That’s no reason to tell someone with hundreds of thousands of dollars to put half of it in bonds. The market isn’t going to stay down for 10 years.
As a matter of empirical observation, rich people with millions of dollars do NOT keep them all in equties and, in fact, tend to allocate a chunk of their wealth to bonds. How large a chunk is debatable.
Tell that to the Japanese.
...Yet it has, multiple times in the last 100 years, if you invest a lump sum. Regular contributions are a different story.
The US stock market? No, it hasn’t. I checked a graph of it before writing that. “Time the market is down” is not the time between peaks on the graph. It’s the time between periods when stocks are a better investment than bonds. For the Great Depression, that was 3 years.
Both the Nasdaq composite and the SP500 reached peaks in early 2000 which they did not get back to until 2013.