WSJ/Malkiel: Where To Put Your Money in 2012

Discussion in 'Financial Planning' started by David S Meyers CFP, Jan 5, 2012.

  1. Link to article at WSJ:

    Link to my blog where I made the following comments on it:

    Another excellent op-ed piece by Burton Malkiel, author of the classic
    "A Random Walk Down Wall Street".

    Malkiel makes the following points (summarized - but you should really
    read the article):

    Bonds, especially US and Europe, are not positioned to do very well
    in the future

    Stocks, especially the US and Emerging Markets are

    Emerging Markets, in general but especially Brazil and China and
    even India look good (natural resources, demographics, etc)

    Single-family houses in the US are less expensive and with ultra-low
    mortgage rates (see "Bonds" above -- a mortgage is the opposite side
    of buying a bond - it's borrowing rather than lending!) look good.
    ("Housing affordability has never been better." Though, of course,
    that's contingent on good credit and probably a job.)

    Costs matter - this was the final paragraph and it's always worth
    repeating: "Control the thing you can control -- minimize investment
    costs. That is especially important in a low-return environment.
    Make low-cost index mutual funds or ETFs the core of your portfolio
    and ensure that any actively-managed investment funds you purchase
    are low-expense as well."

    David S. Meyers, CFP(R)
    disclaimer: for educational purposes only. This is not financial advice.
    David S Meyers CFP, Jan 5, 2012
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