Re:As German Bund Yields Head to Zero, They Still Beat U.S. ...
by fauigerzigerk on Saturday February 09, 2019 @03:56PM
(#19124576)
>What DC scheme wouldn't let you put say 100% in shares?
I'm looking at it from the point of view of fund managers. If the fund promises to invest 50% in bonds then someone's job will be to find suitable bonds.
If you're young and you are free to choose how you want to save for your pension then I agree that stocks are probably safer. Perhaps even if the whole world slowly turns into Japan.
What DC scheme wouldn't let you put say 100% in shares?
Or if not you could take the currency risk on yourself, and buy US shares.
Want to take? That's an interesting question. I would contend that if bonds are yielding 0.08%, they're probably overpriced and thus too risky to buy.
I say that as some one 100% in equity with a long time to retirement, so to each their own.