What History Says

I just got the new Ibbotson Yearbook. It’s a great resource for historical asset performance. Here are a few items that caught my eye.
**Over the last 25 years, long-term Treasuries have slightly outperformed long-term corporate bonds.
**After inflation, T-bills have gone nowhere for nearly ten years.
**Over the last 25 years, long-term Treasuries have fairly consistently outperformed T-bills by about 4.5% a year.
**Over the last 30 years, large-cap stocks have barely outperformed long-term corporates and long-term Treasuries.
The lesson is that long-term T-bonds have been a decent investment especially considering their risk. However, I’m not sure that level of performance will continue.

Posted by on March 29th, 2010 at 11:17 am

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