But between 1980 and 2012 (more than 30 years), as interest rates fell from double - digit to miniscule, returns from low - risk treasury bonds have
outperformed risky stocks.
Not exact matches
If you think
stocks will
outperform, buy
riskier assets.
These smaller companies are
riskier investments, but Banz found that even after adjusting for the difference in risk, small
stocks outperformed larger
stocks.
«the probability that the investor holding
stocks will double her capital every 10 years after inflation, quadruple every 20, combined with 100 % odd that she will
outperform T - bills or government bonds in 20 years, can hardly be called
risky.
Risky investments like stocks often have boatloads of short - term volatility but always outperform less - risky assets (like bonds) over the long -
Risky investments like
stocks often have boatloads of short - term volatility but always
outperform less -
risky assets (like bonds) over the long -
risky assets (like bonds) over the long - term.
Well over the long term lower price
stocks will
outperform higher price
stocks because they're more volatile they're more
risky and you are compensated for that risk.
While
stocks are
riskier than bonds or CDs because there's no guarantee individual companies will succeed, the
stock market
outperforms safer options over the long - term.
Some of the reasons are as follows: some of the
outperforming stocks are more
risky, some of these anomalies no longer occur as they have been exploited, and some of the out - performance is so small that there is no excess profit after trading costs.
As such, it should be impossible to
outperform the overall market through expert
stock selection or market timing, and the only way an investor can possibly obtain higher returns is by purchasing
riskier investments.
Essentially, in the long run, «
risky» assets like
stocks almost always
outperform «safe» assets like cash stored in savings accounts.