Ignore him. The role of fixed income is to mitigate risk. You can assume the friend is taking undue risk by owning it, because current rates for short-term, high quality fixed income aren't that high.
Ask for more details and load up on this bond.
Tell him that you can beat that rate by buying a Greek bond.
Start watching CNBC, panic, and sell everything until the news and market returns are more encouraging.
Find out what went wrong. Figure out how to get out early next time.
Remain disciplined. Expect down markets and take a longer view than 1-, 3-, or 5-year periods.
Risk and return are related. Smaller and more value-tilted stocks provide higher expected returns over the long run because they are riskier.
It's a gamble. We hope we're right.
Smaller companies tend to be more closely tied to the US economy. We don't like international investments.
It's probably best to get everything into cash. You never know what will happen in the stock market.
No. We want to stay aggressive to maximize our wealth. We figure the worst thing that could happen is running out of money and living with our kids.
It depends. We're more interested in understanding what asset allocation gives us the best odds of success to meet our retirement goals.
You should also be disappointed. Why didn't you see the bear market coming?
It's not concerning for several reasons: we know 1.) the S&P 500 might only represent a small portion of our investment portfolio, 2.) if needed, we've got fixed income to weather the bad times, and 3.) we expect bad markets and need them to justify higher expected returns over the long run.
If the US ecomony is doing poorly, surely the international markets will be even worse.
No. This information only represents past history and is not a predictor of future results.
Yes. Sell everything and buy the fund.
Yes. Continue to research other Morningstar material because they're great at predicting mutual fund winners.
Call your friends and ask what they think.
Dig deeper into the problem by searching the internet.
Read it for entertainment or information. Then turn the page and read something that will focus your attention elsewhere.
Good question. It seems like too much diversification. Maybe we should just buy the best 10-20 stocks.
We want broad diversification. It's difficult, if not impossible, to predict which stocks will do better than the overall market.
It gives us bragging rights with friends.