Posted by on Nov 4, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

By Jason Zweig |  Nov. 2, 2018 12:41 p.m. ET


Maybe investors should question the dogma of “stocks for the long run.” History shows that a portfolio of bonds has outperformed stocks surprisingly often and for shockingly long periods.

That’s the intriguing argument in a new research paper by Edward McQuarrie, a retired business professor at Santa Clara University. Investors have long taken it as an article of faith that stocks have always beaten bonds—and always will—if you can just hang on long enough. Prof. McQuarrie’s research is a healthy reminder that this belief is wrong. His findings also show the limits and dangers of extrapolating from the past.



To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

Articles and other research:


Does Stock-Market Data Really Go Back 200 Years?

Don’t Let a Market Crash Hit You at the Finish Line