Stocks vs. Bonds: Why and When?
by Jason Brady
There are many different sources of information about the benefits and limitations of asset allocation.
Effectively, when individuals or professionals try to put together a portfolio, the question of “how much should I own of what?” is often a crucial first step. However, increasingly investors are focusing on goals beyond or in addition to total return. One of the tenets of modern portfolio theorysays that in a frictionless world (no taxes, transaction costs, etc.), investors shouldn’t care about the source of their return and that income (dividends, bond coupons, etc.) is the same
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