Great column from John Waggoner in USA Today. The headline is a reference to the fact that over the last 1yr, 10yr, 20yr and 30ys periods, bonds (long term treasuries, mainly) have had higher total returns (with dividends all reinvested) than large-cap US stocks (mainly the S&P 500).
Some takeaways:
- the selection of stocks is not necessarily a great representation
- the bond performance is very unlikely to be repeated since it all covers a period during which bond yields were dropping – from almost 14% in 1981 to about 3% today (and bond prices go up when their yields go down, so a lot of that long term performance was due to this)
Meyers Wealth Management 