By: CANDollar
MayorQuimby so there is a process of selection bias that would make SP500 returns better than otherwise? Wonder what the returns from both would be with management fees deducted? Bond managers would...
View ArticleBy: The Dow Theorist
Great chart! the implication is clear: What does a better job in protecting your savings, the government or private companies? Morale: Be careful!!!
View ArticleBy: Richard Kain
Always fun to see how buy & holder would have done from 1800 on, but as in Jeremy Siegel’s books, if you don’t count the impact of dividend taxation (quite substantial for the last 100 years) these...
View ArticleBy: victor
1) “Stocks actually do beat bonds — for the really really really long time”: really? and who’s to decided that a 140 years is truly a “long, long time”, especially that the pre 1957 data is dubious at...
View ArticleBy: FT Alphaville » Further reading
[...] – So, apparently stocks actually do beat bonds — for the really really really long term. [...]
View ArticleBy: postpartisandepression
what is striking in the graph is the change. From about 1980 the rate of return on bonds begins to equal that of stocks and from at least 2000 the return on stocks has flattened while bonds seems to...
View ArticleBy: Lord
I suspect if we had data on actual money flows in and out these markets over history, these curves would actually align. While equities with reinvestment have returned 7%, the safe withdrawal rate for...
View ArticleBy: Berkeley Maven
Two hundred years of data is not likely to reliable, and there are certainly no guarantees in economic life. I am left with this question: if stocks were not very likely to outperform bonds over long...
View ArticleBy: smudger
To compare SPX Dividend Yields with US 10YR Treasury Yield is ABSURD! Enough to make me cough up my Heineken. The nearest fair comparison would be yield from the Dow Jones Corporate Bond Index — unless...
View ArticleBy: A7LB
Well Mr. Ritholtz, many legitimate questions have been raised here. In particular, does the ’200 year’ S&P stock chart include the myraid companies which went bankrupt? If not, the S&P graph is...
View ArticleBy: wcvarones
Ah, a digit is missing off the left side of the image, so it’s probably 1050 for stocks. OK then. Still, don’t trust the pre-1957 data or especially the pre-1900 data.
View ArticleBy: KeepPrinting
I can usually pick up on your sarcasm, but from some reason I’m not feeling it today. Weren’t you preaching about the biases built into pre 1900 data like two weeks ago?
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