Comments on 2020-11-11 Buying stock

I would assume it’s an excess return of 5% per annum.

But in any case, everything depends on the starting yield of the bonds. 40 years ago in 1980 was the top in interest rates after the highly inflationary 1970s. Treasury Bonds yielded more than 20%! That was hard do beat for stocks for many years.

But now the same 10y Bonds just yield 0.9%. Almost impossible to outperform stocks with this low starting yield. Bonds offer returnless risk at the moment (risk of default or more likely of inflation).

– Peter 2020-11-11 23:08 UTC


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