Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Jason Zweig: Sometimes, It’s Bonds For The Long Run

FYI: Maybe investors should question the dogma of “stocks for the long run.” History shows that a portfolio of bonds has outperformed stocks surprisingly often and for shockingly long periods.

That’s the intriguing argument in a new research paper by Edward McQuarrie, a retired business professor at Santa Clara University. Investors have long taken it as an article of faith that stocks have always beaten bonds—and always will—if you can just hang on long enough. Prof. McQuarrie’s research is a healthy reminder that this belief is wrong. His findings also show the limits and dangers of extrapolating from the past.
Regards,
Ted
https://www.wsj.com/articles/sometimes-its-bonds-for-the-long-run-1541176880?mod=searchresults&page=1&pos=1

Annual Returns on Stock, T.Bonds and T.Bills: 1928 - Current:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

Comments

Sign In or Register to comment.