Parsad Posted October 31, 2011 Share Posted October 31, 2011 The last 30-year period ending September 30th, is the first such period where bonds have beaten stocks since the Civil War. Cheers! http://www.bloomberg.com/news/2011-10-31/bonds-beating-u-s-stocks-over-30-years-for-first-time-since-19th-century.html Link to comment Share on other sites More sharing options...
bmichaud Posted October 31, 2011 Share Posted October 31, 2011 In the spirit of halloween, let's all run scared from the ultra-scary USA bond vigilanties costume. My o my what are we to do if China doesn't continue to "fund" our deficits. http://pragcap.com/paper-beats-paper Link to comment Share on other sites More sharing options...
Santayana Posted October 31, 2011 Share Posted October 31, 2011 What's really notable about that to me is that years 1-20 of that period were fantastic for stocks. Link to comment Share on other sites More sharing options...
Parsad Posted October 31, 2011 Author Share Posted October 31, 2011 What's really notable about that to me is that years 1-20 of that period were fantastic for stocks. Yup. The comparison is valid, but none of us are buying the market or broad base of bonds. We buy individual securities. Cheers! Link to comment Share on other sites More sharing options...
NormR Posted October 31, 2011 Share Posted October 31, 2011 THE BIGGEST URBAN LEGEND IN FINANCE Link to comment Share on other sites More sharing options...
Junto Posted October 31, 2011 Share Posted October 31, 2011 The last 30-year period ending September 30th, is the first such period where bonds have beaten stocks since the Civil War. Cheers! http://www.bloomberg.com/news/2011-10-31/bonds-beating-u-s-stocks-over-30-years-for-first-time-since-19th-century.html Not at all surprising given interest rate levels...I think my father financed his house at 12%+ back in 1982 now we are at 3.25%... I liken it to looking at the S&P 500 from trough to peak. The bond market will not be able to sustain these levels going forward. Link to comment Share on other sites More sharing options...
PlanMaestro Posted October 31, 2011 Share Posted October 31, 2011 Some people may be too young to remember this, but in 1997 Fidelity Magellan's portfolio manager was fired when some large fund-holders rebelled when he decided to have a large % of his portfolio in corporate bonds ... Link to comment Share on other sites More sharing options...
beerbaron Posted November 1, 2011 Share Posted November 1, 2011 THE BIGGEST URBAN LEGEND IN FINANCE just ask Russian investors their return on capital after the Bolshevik Revolution! As Ben Graham might caution, beware the difference between the loss on capital (a drop in price, from which we can recover) and a loss of capital (100% loss, from which we cannot). Russia’s stock market wasn’t alone in the 20th century as three additional top 15 markets in 1900—Egypt, Argentina, and China—suffered a 100% loss of capital while Germany (twice) and Japan (once) came very close. So what bondholder in Russia did not get wiped out after the Bolchevic revolution? BeerBaron Link to comment Share on other sites More sharing options...
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