4 ms·
That's really cool. Why is the red line diverging from the blue line, since they seemed to be connected earlier in the graph?
by dmix 4y ago
That's really cool.
Why is the red line diverging from the blue line, since they seemed to be connected earlier in the graph?
- compumike 4y agoWe're talking about long time periods, but my sense is that the real return of bonds (blue line) has slowed, while the real returns of equities (red line) has not. If nothing else, it seems like bonds increasingly require investors to take on long duration risk (and more interest rate sensitivity) in order to realize positive real returns, while short-duration bonds barely or do not even keep up with inflation anymore: https://totalrealreturns.com/s/VFISX,VFITX,VUSTX https://totalrealreturns.com/s/VFISX,VFITX,VUSTX for a duration comparison on Treasuries.