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I doubt anyone is surprised that stock sees higher returns than Treasury bonds. A Treasury bonds is, arguable, the world's most secure asset. Consequently, it g
by runeks 12y ago
I doubt anyone is surprised that stock sees higher returns than Treasury bonds. A Treasury bonds is, arguable, the world's most secure asset. Consequently, it gives you the world's lowest (USD) yield.
Bonds, in general, are loans secured by collateral, while buying stock is just buying a slice of a company. Of course the former will have a lower return, as you only lose your principal if the company defaults. Whereas when you buy stock, you have no such guarantee.