Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SeekAndFind

Title should say : Bonds beat stock by factor of 11 from 1981 to 2009


2 posted on 04/14/2009 6:07:56 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 1 | View Replies ]


To: SeekAndFind

It’s called diversification. If people would follow that simple rule instead of dumping every penny into the piece of crap stock they bought from a stranger over the phone, they would be ahead of the game instead of behind.


3 posted on 04/14/2009 6:16:10 AM PDT by TheNewPundit
[ Post Reply | Private Reply | To 2 | View Replies ]

To: SeekAndFind

Well, let’s put a caveat on that headline: that return requires that you are able to get zero-coupon T’s at the sort of yields they produced in 1981 - which for 25 years would have been north of 12%.

Which you cannot do right now. I doubt you can get zero’s at even half the yields seen in 1981.

The only way you’d achieve that sort of yield is to load up on risk in commercial bonds.


6 posted on 04/14/2009 6:25:27 AM PDT by NVDave
[ Post Reply | Private Reply | To 2 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson