Seeking Alpha

"You have the 10-year note at less than 1.5% and you have stocks like JNJ yielding almost 4%,"...

"You have the 10-year note at less than 1.5% and you have stocks like JNJ yielding almost 4%," says Marc Faber, making the case for stocks over bonds. "If you have a time horizon of 10 years, I believe you're going to make more money in JNJ than you will in (Treasurys)."
Comments (9)
  • Regarded Solutions
    , contributor
    Comments (16780) | Send Message
     
    If you have a 3 month time horizon you will make more with JNJ!
    4 Jun 2012, 09:15 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8698) | Send Message
     
    If you are scared of stocks don't buy bonds.

     

    Put your money in an ultra-safe money market account or a super-safe passbook savings account.

     

    Why don't people do this???
    4 Jun 2012, 09:17 AM Reply Like
  • dieuwer
    , contributor
    Comments (2421) | Send Message
     
    Agreed. If you want to be "safe", better stay in cash than in bonds. Latter make no sense with negative treasury note coupon.
    4 Jun 2012, 09:33 AM Reply Like
  • Jon S.
    , contributor
    Comments (64) | Send Message
     
    The main guys at CNBC strive mightily to cheerlead for the world of stocks. If you're a trader, TLT is a better bet than JNJ in the short run. What good is JNJ no matter the yield if the stock is subject to a dark-colored swan that threatens to move the S&P down by 20%, 30%, even 40% in the very near future?
    4 Jun 2012, 09:36 AM Reply Like
  • remurraymd
    , contributor
    Comments (2287) | Send Message
     
    (JNJ) needs to divide and conquer dead money little growth
    other than a small dividend going nowhere.
    (NEM) 3% GREAT hedge here beats the pants off (JNJ) and (TLT)
    (UAN) a little riskier but 10%
    (KMP) always a safe growth dividender
    (NLY) top of the heap dividender
    Backtest comp graph all of the above 5 years
    you will see they are superior.
    4 Jun 2012, 10:15 AM Reply Like
  • shivamastusarvajagatah
    , contributor
    Comment (1) | Send Message
     
    yes,in longterm perspective such stock outperform.
    such stocks must be with evert portfolio irrespective of market fluctuation
    4 Jun 2012, 10:24 AM Reply Like
  • mystro1
    , contributor
    Comments (23) | Send Message
     
    JNJ used to be a safe bet. I'd be buying dozens of other names before JNJ, KMB is a better name in same space. BMY is a safer bet also. Long bond position is crazy.
    4 Jun 2012, 11:09 AM Reply Like
  • sirkyrik
    , contributor
    Comments (3) | Send Message
     
    Putting money in money markets is better than long term bonds as a temporary measure. However, long term money markets are not an investment as the returns are far lower than inflation so you slowly lose value over time. Given that long term bond yields are near all time lows, perhaps even at bubble lows, you have to look at alternatives for long term investing. If you are looking for yield gold and commodities are not an answer. Investment real estate has corrected in price and this could be a good time to buy. Stocks with a long term dividend history could also be a good long term investment.
    4 Jun 2012, 03:02 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    he's crazy but he's right
    5 Jun 2012, 07:55 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector