Common Stocks, Bonds and Inflation

               

This is a follow-up to my previous report on the bleak common stock future.

                     

There is a possible solution to the quandary of a poor long-term common stock market. It concerns the use of the corporate bond market and proper implementation of duration, to suit the investor’s personal horizon.

                     

But be sure you invest in a low-cost bond mutual fund where interest earned is automatically, fully reinvested in shares of the same fund.

Despite erroneous conceptions: Corporate bonds in funds can help overcome inflation and the dearth of income and potentially limited growth from stocks. Estimated earnings can well be at least 6% on a net, net, net basis, if strategy is wisely used. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)