Good ol' boring bonds

There has been huge speculation recently about a potential double dip recession and worries about growth in China, which has led many investors to shy away from the risky stock market. I wouldn't blame worrisome investors either, as markets have shown extreme volatility this year and the Dow Jones Industrial Average now sits below 10000 points. Investors have been reverting to bond investments this year, but if you look back to the past decade, there is evidence to prove that bonds have outperformed stocks not only this year, but for the whole decade. If dividends are included in gains, the S&P 500 lost close to 10% over the past decade, while bonds saw gains of around 4% depending on the coupon and maturity of the bond investments. My advice is unless you have expert skills to exploit the market's volatility, bonds look to be a safer choice in the unchartered waters ahead. Although the markets are failing right now, be prepared for a great buying opportunity to come; at that time you can use the money you safely invested in bonds to enter the stock markets again.