Mike Santoli: Long term Outlook Is For Gains By Stocks

By on September 26, 2010

Mike Santoli, Barrons Streetwise commentator, writes that investors have overstated problems faced by the stock market and bid up bonds despite tax disadvantages. He adds there are strong historical leanings for higher stock prices:

The trailing 10-year return for U.S. equities through the first half of this year has been as poor only six previous times since 1835–and the latest decade was worse than any of those others. The subsequent 10-year annualized total return from those earlier low-water marks was 13.3%, notes Bel Air Investment Advisors. Based on the returns the public is now happily accepting from bonds, most folks would probably be ecstatic with half that.

Source: Barrons
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