Time is the best friend and biggest asset for any investor. Through bull and bear markets alike, the longer you’re in the market, the better the outcome.
But what if your time horizon is relatively short?
What if you’re about to retire (or already in retirement) and can’t wait out all of the market fluctuations?
The traditional answer if you’re looking for near-term security is to stick with the stock market but also own bonds…
But right now, bonds are a losing proposition as inflation soars.
For one, even if the principal is returned to you at maturity, it will be worth less in real terms because inflation will have taken a big bite out of its purchasing power.
Second, in today’s market, bonds aren’t delivering much income: The 10-year Treasury yields around 2.7% currently.