The appropriate mix for almost all investors is a combination of riskier (stocks) and lower risk (bonds and other fixed income) holdings.

Holding only equity positions is unnecessarily volatile and provides little or no opportunity to take advantage of market corrections. Equity only is suitable only for young people who (1) have very little money invested now and (2) are making regular contributions such as a monthly PAC.


Holding fixed income only is suitable only when the spending goal is near term.

In all other situations a balanced portfolio of some proportion will produce the best combination of safety and growth.  Even in a low yield environment like today, fixed income represents dry powder if nothing else.

The other critical requirement is to have the conviction and discipline to rebalance your portfolio when others are too fearful.