7 Reasons Not to Use a 100% Stock Portfolio

By The White Coat Investor

I’m not sure if the prevalence of “Why bonds?” and “Should I use a 100% stock portfolio?” threads on internet forums is inversely correlated with future stock market returns, but it wouldn’t surprise me. I do know that I didn’t see very many of them in late 2008.  I’m seeing a ton of them now, so it is probably time to readdress the topic.

I fully understand the desire to use a 100% stock portfolio.  Once somebody looks at past behavior of the stock market and understands the general rule between risk and return, it seems obvious to question why they might want to put 10%, 25%, 40% or more of their portfolio into those pesky low-returning bonds.  I mean, look at the data… Read More