tag:blogger.com,1999:blog-11027528911364475.post2291044886239163679..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Equities for the LOOOOONNNNGGGG RunJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-11027528911364475.post-47467258424059389502010-07-08T05:19:00.713-07:002010-07-08T05:19:00.713-07:00In fact, I think you will find that most of the re...In fact, I think you will find that most of the return is re-invested dividends.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-8375273388563338162010-07-06T18:43:16.001-07:002010-07-06T18:43:16.001-07:0010.1% vs 10.4% vs. 5.8%10.1% vs 10.4% vs. 5.8%Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-31893802704670898872010-07-06T15:45:43.015-07:002010-07-06T15:45:43.015-07:00depends if you're investing in a taxable accou...depends if you're investing in a taxable account or not...Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-19432248908496607042010-07-06T15:04:26.020-07:002010-07-06T15:04:26.020-07:00Stocks were still the better deal.
Most of the s...Stocks were still the better deal.<br /><br />Most of the stock return would be capital gain, which is both deferrable and taxed at a lighter rate.<br /><br />Much of the bond return would have been taxable income, with taxes based on your marginal income tax rate due every April 15.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-77370978165893178122010-07-06T06:14:03.222-07:002010-07-06T06:14:03.222-07:00Just for fun, what are those annualized returns? I...Just for fun, what are those annualized returns? I'm not good with backwards math.Jhttps://www.blogger.com/profile/18116121761413049785noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-81213265978950635982010-07-06T06:01:12.495-07:002010-07-06T06:01:12.495-07:00Speaking about equities for the LOOOOONNNNNGGGG Ru...Speaking about equities for the LOOOOONNNNNGGGG Run...<br /><br />Mehra had a statistic about 10 years ago, in an update to the equity premium puzzle, that $1 invested in the US Stock Exchange in 1820 would be worth something like $0.5m, while $1 invested in Treasury bills at the same time would be worth about $220. (I hope I'm remembering the scale correct. The numbers were ridiculous anyway, so it was definitely a totally disproportionate return to risk.)<br /><br />I have no idea how he corrected for survivor bias there, but I presume he was aware of it.Ronan Lhttp://ronanlyons.comnoreply@blogger.com