Imagine the Unimaginable

March 27th, 2009 by Mebane Faber

Comments

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).

Dividend Growth Investor

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..

G

How would the TAA model have fared 1803 -1871?

gbasin

Before the Fed, the US tended to experience slight deflation over time, hence the outperformance of fixed income instruments.

blog comments powered by Disqus

Archives

Disclaimer

The opinions expressed on this site are those solely of Mebane Faber and do not necessarily represent those of Cambria Investment Management, Inc. (“CIMI”). This website is made available for educational and entertainment purposes only. Mr. Faber is an Investment Adviser Representative of CIMI, an investment adviser registered with the states of California and Utah. This website is for informational purposes only and does not constitute a complete description of the investment services or performance of CIMI. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. A copy of CIMI’s Part II of Form ADV and privacy policy is available upon request. This website is in no way a solicitation or an offer to sell securities or investment advisory services. Mr. Faber and CIMI disclaim responsibility for updating information. In addition, Mr. Faber and CIMI disclaim responsibility for third-party content, including information accessed through hyperlinks. Faber receives affiliate commissions through Amazon and AlphaClone.

World Beta Blog