Quote:
Originally Posted by retiredguy123
I believe in being diversified. One third in stocks, one third in bonds and one third in cash is a conservative mix. I just checked my Vanguard index funds. For the past 10 years, the average annual returns are 8.49 percent for S&P 500 stocks, 3.95 percent for intermediate term bonds, and 0.5 percent for the money market. The problem with trying to time the market is that most people cannot do it accurately, and sometimes they fail with horrible results. Back in the 70's, I thought interest rates were high at 8 percent until they went to 16 percent.
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retiredguy123 and i are in near concurrence except i would not invest into bonds until the Fed raises interest rates. you have a better ROI in stocks with the current US administration. 80% stock, 20% money market to use as next a nestegg to ride out any correction.
totally agree with S&P and index funds. look at manufacturing, military, energy, and technology stocks for the next 7 years.