It's quite clear that stocks are cheaper than bonds. I can't imagine anybody having bonds in their portfolio when they can own equities, a diversified group of equities. But people do because they, the lack of confidence. But that's what makes for the attractive prices. If they had their confidence back, they wouldn't be selling at these prices. And believe me, it will come back over time.
When you look at dividend returns on equities versus bond yields, to me it's a pretty easy decision to be heavily in equities.
When you look at dividend returns on equities versus bond yields, to me its a pretty easy decision to be heavily in equities.
Equities are boring; bonds are disgusting.
The positive aspect of my negative view is essentially that you shouldn't own cash and government bonds, but you should be in assets like real estate or equities or precious metals or in commodities.
I believe investors should invest for the long run, so I don't buy and sell. I usually maintain the classic index of global equities, diversified U.S. and global and emerging markets, and when the risk is larger, I diminish the amount in global equities and put more into liquid assets - but very irregularly.
When I look at asset prices; real estate, bonds, equities, vintage cars… I think that gold is actually one of the few assets that is relatively cheap, relatively inexpensive.
You have to say that we are again in a massive financial bubble in bonds, in equities, in [other] asset prices that have gone up dramatically.
If, in 2008, I could have not been in equities, I wouldn't have been in equities. If I could have not bet on the Seahawks in the Super Bowl, I wouldn't have bet on the Seahawks. Life and statesmanship are not lived with the benefit of hindsight.
Simply put, investors should own less equities, more bonds, more global investments, more cash and more dry ammunition.
Overseas investors have a choice. They can buy property, equities, bonds, or a host of other assets either in the United Kingdom or abroad. Each decision will be taken depending on the available net return, that is, the profit after tax.
We believe that people moving their portfolios to an overweight in bonds will be disappointed over the long-term and will significantly underperform an asset allocation that over-weights equities.
I would rather buy Indian equities than the S&P 500.
We take smaller companies and middle-sized companies, all around the world, and we do currency exchange for them; we raise bonds and equities for them; and we do inventory finance, trade finance, and custody of assets.
In choosing a portfolio, investors should seek broad diversification, Further, they should understand that equities--and corporate bonds also--involve risk; that markets inevitably fluctuate; and their portfolio should be such that they are willing to ride out the bad as well as the good times.
You've always got to think about having some fixed income in your portfolio as well as equities.