FYI: In any given year, stocks are far more volatile than cash or even high-quality bonds. But over long periods, stocks have trounced cash and bonds. Stocks are virtually assured to continue to outperform bonds in the long run, explains the finance professor at the University of Pennsylvania’s Wharton School in the book first published in 1994 and now in its fifth edition.
That is why many financial advisers go heavy on stocks.
Yet as compelling as the logic is, it hasn’t panned out so far this century. In the chart below, you can see the total return provided by bonds has handily bested U.S. stocks and downright trounced international stocks, as measured by broad Vanguard Group index mutual funds. So with more than 16 years of this century already relegated to the history books, we know at least that the long run is greater than this period.
Regards,
Ted
http://canmua.net/colorado/stocks-for-the-long-run-not-so-far-this-century-419016.html
