Some Things Just Go Up (If You Wait Long Enough)

  Here’s a chart of long-term asset performance…. The blue line shows returns from US stocks from 1900 to today. That’s a 48,000x increase in nominal value. The yellow line shows the returns from US bonds from 1900 to today. That’s a 300x increase in nominal value. If you look at this in isolation things …

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Bond. Treasury Bond

The Federal Reserve publishes the yield-to-maturity of US Treasury bonds. However, the actual returns earned by investors are not publicly available. Nor are they readily and intuitively discerned from historical yields, since “a bond’s return equals its yield only if its yield stays constant and if all coupons (cash payments) are reinvested at that same …

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