On: Private equity is devouring the U.S. economy

[nradov]

Bond funds generate higher risk-adjusted returns than cash over most historical periods. You have to factor in income from coupon payments. You can cherry pick a few brief periods when this wasn't true but no one has the ability to reliably predict when that will happen in the future so it's a foolish approach to retirement planning. Most target date mutual funds do include some cash and equivalents in the portfolio as the target date approaches.

[gymbeaux → nradov]

Peter Lynch’s mantra is to not bother with bonds, and his arguments are compelling enough for me to only stick with low-expense-ratio index funds.