Quote:
Originally Posted by meaghanchan
2. There is a chance (albeit small) that bonds will outperform stocks even over your very long time horizon
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More importantly, there will be periods when bonds outperform stocks in the shorter term which helps cushion the bear markets.
Vanguard S&P 500 index: YTD: -8.71%; 1 year to 3/31: -5.17%
Vanguard Total Bond index: YTD: +2.43%; 1 year to 3/31: +7.70%
So for the past year, my bond fund has outperformed the stock fund by 12.87%!
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