“Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation” — Suze Orman
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In this quote, Suze Orman is advising that including bonds in one’s investment portfolio provides important benefits. While stocks offer higher potential returns, they also carry more risk since their values can fluctuate greatly. Bonds provide stability and help cushion losses when the stock market declines.
However, she also cautions that avoiding stocks altogether means your investments are unlikely to outpace inflation over the long run. So the best approach is a balanced mix of stocks and bonds – stocks for growth potential and bonds to provide some downside protection and stability.