Stocks outperform bonds in the long run. Well, in the 1800s that was the realllly long run. 70 years long run.
Article from the FT (via Random Roger).
Get the Latest from World Beta
Subscribe to Newsletter
Find Me On…
My Book
Search
Archives
My Web Sites
Data Resources
Blogroll
- 10Q Detective
- Aleph
- AlphaClone Blog
- James Altucher
- All About Alpha
- Bespoke Investment Group
- The Big Picture Boston
- Capital Spectator
- Carpe Diem
- Cheap Stocks
- Crossing Wall Street
- CXO Advisory
- Dealbreaker
- Designing Better Futures
- Disciplined Investing
- dshort
- EconomPic Data
- FT Alphaville
- Greg Mankiw
- Hedge Fund Letters
- Howard Lindzon
- Humble Student
- Index Universe
- Infectious Greed
- Info is Beautiful
- Instapundit
- Investment Linebacker
- John Mauldin
- Kottke
- Market Folly
- MarketSci
- Microcap Speculator
- Tradestreaming
- Nuclear Phynance
- Random Roger
- Simoleon Sense
- TechCrunch
- The Big Picture
- The Wild Side
- Trendfollowing
- VIX and More
- Wilmott
- Zero Hedge
Before the Fed, the US tended to experience slight deflation over time, hence the outperformance of fixed income instruments.
How would the TAA model have fared 1803 -1871?
Of course if you added re-invested dividends you'd find that stock market investing was pretty profitable over that 70 year period you are talking about. Most investors focus solely on capital gains and seem to forget that dividends are the soundest fundamental indicator of a business' ability to generate cash flow..
Of course if you added re-invested dividends you'd find that stock market investing was pretty profitable over that 70 year period you are talking about. Most investors focus solely on capital gains and seem to forget that dividends are the soundest fundamental indicator of a business' ability to generate cash flow..