Stocks or bonds? Murray twins mull investment strategy
As the Federal Reserve is expected to raise interest rates steadily this year, investors are wondering whether to concentrate on stocks or bonds.
Stocks allow an investor to capture a growing and stable dividend that will keep up with the cost of living, Jonathan Murray, managing director of wealth management at UBS, told Liz Claman during an interview Thursday on FOX Business.
“The key, Liz, is what can keep up with rising rates and rising inflation,” Murray said. “And the answer through time, as your friend Mr. Buffett says, is stocks.”
His twin brother, David, said investors who are on the cusp of retirement should buy bonds, which are more “buoyant” and decline less frequently.
“The idea of losing 20, 25, 30, 40, 50% in your savings at a time when you can least afford to do, that meaning when you are pulling out of your portfolio, that’s a very scary thing,” he said on the “Countdown to the Closing Bell” program.
The Murray twins, co-authors of “Two for the Money,” both like investing in floating-rate notes (FRNs), a security whose interest rate fluctuates with the market.