Post by Admin on Mar 9, 2022 10:28:05 GMT -5
Anyone who cares about risk/volatility should think carefully when they compare high yield/income stocks/CEFs to bonds.
The (chart) below shows the risk/volatility between SPY,SCHD(about 3% yield),PDI(8-10% yield) to VBTLX(US Tot bond index) between 2/19/2020 to 3/23/2020.
SPY lost 33+%...SCHD lost 32.50%...PDI lost over 45% and...drumroll VBTLX lost only 0.8%.
So, if risk/volatility does bother you, you should invest 100% in stocks, in the next 30 years, there is a good chance they will do better. As a young retiree, I care about the next 5-10 years.
So, if risk/volatility does not bother you, you should invest 100% in stocks, in the next 30 years, there is a good chance they will do better. As a young retiree, I care about the next 5-10 years.
Actually, I cared about volatility since 2000, even as a younger investor, and it proved to be a better choice
The (chart) below shows the risk/volatility between SPY,SCHD(about 3% yield),PDI(8-10% yield) to VBTLX(US Tot bond index) between 2/19/2020 to 3/23/2020.
SPY lost 33+%...SCHD lost 32.50%...PDI lost over 45% and...drumroll VBTLX lost only 0.8%.
So, if risk/volatility does bother you, you should invest 100% in stocks, in the next 30 years, there is a good chance they will do better. As a young retiree, I care about the next 5-10 years.
So, if risk/volatility does not bother you, you should invest 100% in stocks, in the next 30 years, there is a good chance they will do better. As a young retiree, I care about the next 5-10 years.
Actually, I cared about volatility since 2000, even as a younger investor, and it proved to be a better choice
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