Wednesday, May 04, 2005

Mark Hulbert: Sam Eisenstadt's remarkable research legacy - Financial - Financial Services - Markets/Exchanges - Market News

Mark Hulbert: Sam Eisenstadt's remarkable research legacy - Financial - Financial Services - Markets/Exchanges - Market News

Isn't it amazing? An investor in Value Line stocks from 1980 to now would have made 15.8% compounded on their money and the public and many money managers are afraid to invest in stocks. The piles of money held in money market accounts, bond funds, balanced funds, life style funds, bank cds, and savings accounts is incredible.

My family invest in real estate and stocks. We keep enough in liquid situations to bounce off a rude shock in the markets but our average return on real estate and stocks has dramatically outpaced the rates earned on bonds and cds. We buy bonds when interest rates are high. Owning bonds to balance a portfolio is one thing but the massive amounts invested by the public shows their fear over whelms their common sense.

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