Comments on: Stocks outperform Treasury Bills? In the long run. http://www.diyfinances.com/2006/04/04/stocks-outperform-treasury-bills-in-the-long-run/ Take control of your finances. Fri, 21 Nov 2008 07:55:34 +0000 http://wordpress.org/?v=2.5.1 By: Average Joe http://www.diyfinances.com/2006/04/04/stocks-outperform-treasury-bills-in-the-long-run/#comment-109 Average Joe Wed, 05 Apr 2006 20:31:22 +0000 http://www.diyfinances.com/2006/04/04/stocks-outperform-treasury-bills-in-the-long-run/#comment-109 Hmm. I will have to check. I did not read the actual paper that was written by Jeremy Seigel. But, it does say that over any 20 year period (in the US), stocks outperformed T-Bills 94.7% of the time - so that is your 'almost'. What it doesn't tell us is by how much the stocks did outperform the T-Bills when they did outperform. Hmm. I will have to check. I did not read the actual paper that was written by Jeremy Seigel. But, it does say that over any 20 year period (in the US), stocks outperformed T-Bills 94.7% of the time - so that is your ‘almost’.

What it doesn’t tell us is by how much the stocks did outperform the T-Bills when they did outperform.

]]> By: Canadian Capitalist http://www.diyfinances.com/2006/04/04/stocks-outperform-treasury-bills-in-the-long-run/#comment-107 Canadian Capitalist Wed, 05 Apr 2006 17:35:32 +0000 http://www.diyfinances.com/2006/04/04/stocks-outperform-treasury-bills-in-the-long-run/#comment-107 Does the return for stocks include the effect of reinvested dividends? I am suspecting not, because in almost every rolling 20 year returns, stocks beat the returns of both T-bills and bonds (I don't have the source with me but I think it was Ibbotson Associates). Does the return for stocks include the effect of reinvested dividends? I am suspecting not, because in almost every rolling 20 year returns, stocks beat the returns of both T-bills and bonds (I don’t have the source with me but I think it was Ibbotson Associates).

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