Retirees Face High Stock Prices and Low Bond Yields – WSJ.com

Conventional wisdom usually advises older investors and retirees to balance a portfolio of bonds, stocks and annuities to squeeze the most from their savings during the third stage of life.

But recent events on Wall Street and in Washington, including a booming stock market and Federal Reserve warnings about “tapering” its easy-money policy, suggest those investors may need to junk conventional wisdom and think again.

Stocks may be too expensive, while bonds are likely to fall as the Fed pulls back and interest rates rise.

via Retirees Face High Stock Prices and Low Bond Yields – WSJ.com.