Thanks for this, Dave. It certainly is an interesting time. At this point, my portfolio is split almost evenly between cash, bonds, and stocks, including global stocks.
As you point out, the cash offers a very decent risk-free return. Bonds offer a measure of protection against reinvestment risk (their price will up if interest rates decline, offsetting their lower yields). And stocks offer potential for capital gains.
Since no one can predict the future with 100% certainty, this seems like a reasonable balance at the present time.
Thanks for this, Dave. It certainly is an interesting time. At this point, my portfolio is split almost evenly between cash, bonds, and stocks, including global stocks.
As you point out, the cash offers a very decent risk-free return. Bonds offer a measure of protection against reinvestment risk (their price will up if interest rates decline, offsetting their lower yields). And stocks offer potential for capital gains.
Since no one can predict the future with 100% certainty, this seems like a reasonable balance at the present time.