Bonds for the Long Run?
Investing orthodoxy is built off the assumption that stocks outperform bonds over the long run. New data shows that sometimes this assumption is devastatingly wrong.
In 1994, Professor Jeremy Seigel published a classic book that helped shape his investing view and asset allocation decisions for millions investors around the world. “Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies” continues to be a top-selling investment book. His conclusions are based on stock market data going back about 200 years.
New research has compiled stock market data going back to 1793, adjusts for some erroneous methodologies and reaches a different conclusion – one that contradicts Siegel’s long-standing belief that stocks are the preferred asset class over the long run.