FWIW, Buffett reiterated just this week that he still thinks stocks are better than bonds right now despite "everyone" saying stocks are "frothy"... in fact, a lot of TA suggests the market just broke out to the upside (looking at graphs from 1980 to present) and that we could be in a secular super bull -- sure, even if true there will be 15% corrections along the way, but the bull would remain intact for the long haul...
For myself, I transitioned to DGI investing for the most part when I finally realized I haven't got a clue what stock or bond or housing or car prices are going to be at any point in the future, but I do know what a company is willing to pay me in dividends and whether said company is likely to continue paying AND increasing them -- reliably -- through bulls, bears, corrections... whatever... as long as I do my homework and find such companies with strong balance sheets (DD on whether it will continue to exist in 20-30 years during my retirement), I can confidently predict that I'll have more dividend income next year than I do this year... on and on into the future...
If anything, IMO, bonds look to be a bubble about to burst when I look at TA of that market -- makes sense as even with recent interest hikes, yields are incredibly low for most tsy and other "safe" bonds, which means of course that their prices are way high and have been since the days of effectively zero interest rates began 9-10 years ago...
I used to include some bond CEFs in my holdings, but they were dismal performers and I had no clue what they would distribute to me from year to year, and it could get ugly fast... I have decided that my wife's pension (very good) along with my SS (as good as I could hope for all things considered) are my "bond" like investments... regulated utilities I view as almost bond-like in their safety and yields (both quite stable for the best utilities)... I sleep very well at night... we have yet to even touch a penny of my wife's retirement savings, rather allowing it to continue growing via drips -- her savings are roughly equal to mine, so that is a substantial chunk of deferred income for now (RMDs begin for her in 5-6 years)...
Good luck! |
