Quote:
Originally Posted by qba335i
Again - Not exactly... let's look at actual data vs your opinion.
Data set: 10 year returns - data 01/1950 - 09/2018
1) 100% stocks (S&P500)
Average return: 10.04%
Average loss: -1.2%
2) 90% stocks + 10% bonds
Average return: 10.00%
Average loss: -0.9%
As you see you get basically the same return with lower risk. You want to design a portfolio that will provide the highest return per unit of risk.
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I'm too lazy to look it up, but I'll take your word for it. What is the total return since 1950 for that scenario?
More broadly, again, you're still better off not paying anyone to do anything for you and just buying stock index funds over a lifetime. If you want to do 10% bonds, that won't kill you...but stocks are overwhelmingly the best choice for long term investors.
Equities over a lifetime will outperform the bonds, so even a 10% bond mix is going to be a drag versus 100% equities. Not sure what the detail is in your data.