Stocks and bonds are the basic building blocks of our portfolio. Think of stocks as the offense and bonds as the defense. Bonds are basically loans to a government entity or company that are paid back over time. Depending on how creditworthy the borrower is and how long the borrower will take to repay the loan, bonds can be relatively safe investments, or carry more risk. The two big factors that help investors classify bonds are referred to as quality and maturity. (more…)
Stocks represent ownership in a company and provide the long-term growth an investment portfolio needs. When you invest in stocks, you invest in the growth of companies and the economy.
While bonds provide investors with stability and are more predictable, stocks have outperformed them for decades. Whether you invest in large companies or small ones, history shows that stocks will outpace bonds, as the above graph shows. Note, too, the difference between short and long-term bond investments. Over the last 90+ years, short-term bonds barely kept up with inflation, meaning investors who committed to short-term bond portfolios over the long term may have actually lost money over time. In fact, without stocks driving growth in a portfolio, even keeping up with inflation can be a challenge. We know that without stocks, an investment portfolio isn’t going to help you meet your goals. (more…)
What’s the best asset mix for you? You already know that your two major options are stocks and bonds. The choice between them represents a basic tradeoff: growth vs. stability. Investing in stocks is more likely to produce higher returns than investing in bonds, but with more volatility. (more…)
Merriman is an independent investment advisor. That means we don’t receive any income or financial benefit from the companies whose products we recommend for you. This keeps us on the same side of the table with you, allowing us to fulfill our fiduciary responsibility to act in the best interest of our clients, and we take that responsibility seriously.
Our research department reviews the available investment options and selects investments based on the following key principles. (more…)