STORY: :: Lisa Bernhard, Reuters
:: Anna Rathbun, Chief Investment Officer, CBIZ Investment Advisory Services
While bonds "help facilitate diversification" and "mitigate the volatility" in portfolios, stocks offer "the premium of managing a company, investing in a company, and having productivity and innovation on top of that," Rathbun said.
The return on stocks is therefore "going to be higher than the purchasing power that you're losing through inflation at around 2.5 to 3%, she added."
Speaking with Reuters' Lisa Bernhard, Rathbun also discussed why January is a good time to rebalance portfolios, and how Thursday's retail sales data for December reflected consumers' decisions to "front load" purchases before President-elect Donald Trump's proposed tariffs on imported goods take effect.
