| Recently since the stock market has turned | | | | value most likely. |
| around a bit, we have been hearing the experts | | | | Bonds |
| say that Bonds may be a better buy than stocks | | | | A ten year treasury bond is currently paying |
| right now. I have to say that I respectfully | | | | 3.6%. With inflation expected to rise, likely to the |
| disagree with their thinking. Ok, so Stocks have | | | | 5-6% range sometime by next year, these bonds |
| gone up over 30% since they bottomed back in | | | | will actually be losing money in a real sense. If |
| March, however, Bonds are still paying extremely | | | | inflation goes up only mildly to a 4% rate, than it |
| low interest rates. Here is my take on each: | | | | is likely that the same 10 year treasury released |
| Stocks | | | | next year will have a 6-7% coupon. Why buy |
| The stock market is still undervalued in my | | | | bonds now, when you can wait till they yield |
| opinion, especially if this recession has turned | | | | more? |
| around, and will likely be over with come the 3rd | | | | Conclusion |
| quarter. Business's are stripped down, and much | | | | I would recommend buying high paying safe |
| more efficient than they were just 3-4 months | | | | dividend stocks until we see where inflation is |
| ago. This means that once the economy | | | | headed. Likely by next year, you will be able to |
| completes it's turn around, many companies will | | | | sell those stocks for 30-50% more than what |
| have higher profit margins. There are dozens of | | | | you paid, plus buy treasuries at that time that |
| solid companies with safe dividends paying as | | | | yield probably close to twice what they are |
| much as 5-7% returns. This is not to mention the | | | | yielding now. Don't rush into anything, and |
| fact that the stocks themselves will increase in | | | | diversify. |