In short, the risks of owning equities have paid substantial excess
returns over the past century.
Not exact matches
Dividends, the share of their revenues that companies pay to their shareholders, are a big deal:
Over the
past century, they've accounted for roughly half of total
returns earned by stock investors.
The chief reason the OMP has no foreign diversification is that long - run
returns on Canadian stocks are better than the global average, and nearly as good as
returns on U.S. stocks (best performing country
over the
past two
centuries).
When I said that the cult of equity was dying, what I meant was that those investors and those liabilities structures such as pension funds and insurance companies that have depended on a 6.5 % constant real
return from stocks such as we've have had
over the
past century are bound to be disappointed.
In this segment of the «Look Back» series, we consider inflation and the subsequent real rates of
return of holding cash (defined as holding Treasury bills or T - bills)
over the
past century.
If one excludes the 1980 - 1997 period, the historical correlation between 10 - year Treasury yields and 10 - year prospective (and actual realized) equity
returns is actually slightly negative
over the
past century, and is only weakly positive in post-war data.
Over the
past half
century, U.S. and Canadian stocks have provided
returns of about 10 % a year, while Canadian bonds have generated
returns around 8 % a year.
Over the
past half
century, inflation has cut the purchasing power of your
return by 3.5 percentage points a year.
«
Over the past century, dividends have provided over two - thirds of the real returns earned in US sto
Over the
past century, dividends have provided
over two - thirds of the real returns earned in US sto
over two - thirds of the real
returns earned in US stocks.
What are the average
returns for a global stock market index (by definition the most «neutral» stock index)
over the
past century?
Of the 9.6 percent nominal total
return earned by stocks
over the
past century, fully 9.5 percent has been contributed by investment
return - 4.5 percent by dividend yields and 5 percent from earnings growth.
Returns over the past quarter century have been poor, while returns prior to that were seemingly
Returns over the
past quarter
century have been poor, while
returns prior to that were seemingly
returns prior to that were seemingly decent.
After building a database of nearly 200 years of US stock and bond
returns, Siegel discovered that
over the
past two
centuries US stocks have delivered a surprisingly consistent real
return (net of inflation).
«Thus, human beings are now carrying out a large scale geophysical experiment of the kind that could not have happened in the
past... Within a few
centuries we are
returning to the atmosphere and oceans the concentrated organic carbon stored in sedimentary rocks
over hundreds of millions of years.»