Stocks Vs. Bonds—Another Look

Here’s an interesting chart. I divided the total return of two index funds, the Vanguard 500 Index Investor (VFINX) by Vanguard Long-Term Investment-Grade (VWESX). The chart begins in 1988.
It’s a quick-and-dirty way to look at how well stocks have done against bonds.
Although stocks have historically outperformed bonds, that hasn’t been the case in recent years. Bonds haven’t been just less volatile, they’ve been more profitable over the last ten years.

Posted by on August 26th, 2009 at 1:24 pm

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