The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Bonds vs Bond Funds--Again||Date: 12/30/2009 10:28 PM|
|Author: temsike||Number: 29617 of 35351|
Bonds are not nearly as liquid as equities and thus have higher transaction costs, so the transactional cost of trying to beat the bond market is higher than the transactional cost of trying to beat the stock market.
Now, I'm one of the first to admit that bonds aren't my bag. But I know stocks. I also know how incredibly difficult it is to beat the SP500 stock index over the long term with stock-picking. It's a loser's game.
Why is beating the bond market easier than beating the stock market if the transaction costs are higher?
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|