Bonds Beat Stocks by a Factor of 11 Times From 1981 to 2009

By on April 18, 2009

Paul Farrell obtained this stunning statistic from Gary Shilling; who figured zero coupon bonds were the superior investment over the last 28 years. Farrell goes on to surmise that stocks are a scam and rightfully rails against Wall Street looters and their bonuses.

Shilling projects a secular bear market ending around the year 2020 and figures the following will give investors an edge: The U.S. dollar; and for the long-term, dividend-paying stocks, asset managers, Treasuries, North American energy, apartment REITs and factory-built homes.

Source:

http://www.marketwatch.com/news/story/well-need-more-bear-market-beating-bonds/story.aspx?guid=%7BD9A93369%2D730F%2D4670%2DBD61%2DCCA853F57C8B%7D&dist=msr_2

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2 Comments

  1. Anonymous

    April 19, 2009 at 3:43 pm

    article shows as unavailable – but given the 1981 starting and 2009 ending points it seems likely. High interest rates followed by 25 years of falling inflation does that. Stocks have less of an advantage in a lower inflation environment.

  2. stocksystm

    April 19, 2009 at 9:13 pm

    Thanks for pointing out the linkage problem. It should work now.

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