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Well the problem there is that you don’t know which companies will pay better than bonds and which ones won’t. Haven’t run the numbers, but I assume that you c
by Marsymars 1y ago
Well the problem there is that you don’t know which companies will pay better than bonds and which ones won’t.
Haven’t run the numbers, but I assume that you could take the S&P 500 over whatever timeframe you want, remove all the stocks that didn’t outperform bonds, and be left with a basket of stocks that wildly outperforms the actual S&P 500.
- epolanski 1y ago> Well the problem there is that you don’t know which companies will pay better than bonds and which ones won’t. And that uncertainty should be priced in with a risk premium, the risk premium is nowhere to be seen.