tag:blogger.com,1999:blog-11027528911364475.post2494082238331619690..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Long Bonds / Short Equities ReduxJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11027528911364475.post-67472025200394550542009-01-12T04:22:00.000-08:002009-01-12T04:22:00.000-08:00i think you are misinterpreting the chart. it show...i think you are misinterpreting the chart. it shows bonds vs. equities over a 19 year period. if the two asset classes "should" have similar returns over a long time frame, then bonds are the way to go as they have much lower risk (higher in the capital structure) and lower volatility. <BR/><BR/>one way to think about equities is they are a levered form of debt. so they should have greater return characteristics.<BR/><BR/>in other words, i couldn't disagree more.Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-88003804552960466382009-01-11T21:06:00.000-08:002009-01-11T21:06:00.000-08:00I would argue this is how it should be. Broad ind...I would argue this is how it should be. Broad index investing shouldn't provide a premium over a long time series if markets are operating efficiently. Creating alpha should require something other than selecting a trend line and waiting 20 years.z... ! ...zhttps://www.blogger.com/profile/15325709502192014870noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-92147844397629965752009-01-09T09:00:00.000-08:002009-01-09T09:00:00.000-08:00Thanks a lot for your job, mate!Thanks a lot for your job, mate!Anonymousnoreply@blogger.com