Stocks offer 'overwhelming' long-term advantages to bonds, says Wharton's Jeremy Siegel. Here's his math to back this up.

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

'Certainly, the gap between bonds and stocks has narrowed from what it has been in recent years, but there's still a decided advantage to owning stocks,'...

As inflation-adjusted U.S. bond yields climb to their highest levels in nearly 15 years, some investors are wondering whether owning stocks is still “worth it” over the long haul.

“Certainly the gap between bonds and stocks has narrowed from what it has been in recent years, but there’s still a decided advantage to owning stocks,” Siegel said Monday in a phone interview.MarketWatch: What do ordinary investors misunderstand about the long-term benefits of owning stocks compared with bonds?

If you’re planning a long-term portfolio, a retirement portfolio, a portfolio for a young, working person or child, the advantage in stocks is still overwhelming. There’s still a full month of inflation data, of payroll data, before the September meeting and Powell said they’re going to be data dependent. As a result, his talk may disappoint those who are expecting a big market-moving event.I think he will basically say their work is not yet done. They’re not down to where they need to be. However, they have made a lot of progress, the labor market has slowed but GDP hasn’t because, as I mentioned, there’s been a huge surge in productivity.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jeremy Grantham’s GMO plans its first ETF, a fund that will target quality stocksLegendary investor Jeremy Grantham’s GMO is planning to offer an exchange-traded fund that will invest in U.S. quality stocks, the firm’s first ETF as it...
Source: MarketWatch - 🏆 3. / 97 Read more »

Hong Kong stocks fall for seventh day as Japanese stocks gainAsia-Pacific stocks mostly increased Monday, Aug. 21, with shares in Hong Kong declining for the seventh day. Hong Kong stocks dropped, with the Hang Seng...
Source: MarketWatch - 🏆 3. / 97 Read more »