Most people invest most of their wealth into stocks and bonds. Coming from a private equity background, I never really understood the appeal of this approach to investing.
Bonds pay literally nothing when you account for inflation and taxation. A long time ago, when you could still earn something from bonds, they were pictured as safe income investments, but in May of 2020, with the 10-year Treasury at 0.6%, I would not even invest in them for diversification:
Stocks, on the other hand, could produce attractive long-term returns in theory, but in reality