Growth StocksIn periods of inflation, growth stocks like those that make up the S&P 500 tend not to keep pace, according to WSJ.com. “Bonds,” Jakab wrote, “… are the real wild card.” Rising rates combined with federal debt could prove to be a dangerous combination for long-term bond investors. These were designed to be stable, well-balanced, long-term investments to provide financial security in retirement. Regularly rebalancing a mix of safer and riskier assets still trumps market-timing, though perhaps not with the same assets,” Jakab wrote. “The next decade might not be pretty, but with work it can be less ugly.”More From GOBankingRatesThis article originally appeared on GOBankingRates.com: Retirement Savings: Your ‘Set It and Forget It’ 401(k) Strategy Is Broken — 5 Investments To Stop Making Right Now
Source: Wall Street Journal October 26, 2023 20:31 UTC