Saturday, April 12, 2008

Stocks Versus Bonds Long Term


Eddy Elfenbein of Crossing Wall Street looks long term at stocks versus bonds. he prepared the chart.
What I find interesting is that the spread between the returns of stocks and bonds really isn’t that much. I think would surprise many investors that boring bonds have held their own. Over the last 40 years, stocks have beaten bonds by a final score 10.5% to 8.4%.
He notes that he raised he bond yield by the 2% average difference in return to demonstrate how closely the two track one another over time.
hat tip to The Kirk Report.

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