Sunday, October 25, 2009

Can you make 8% over the long term with just Treasury Bonds?


From Mario Iacone, October 22, 2009


The return of this fund is 8.22% since 1986, a 23 Year Period.

[Click image to enlarge]



Please notice that the performance of this one example, Vanguard Fund, is slightly below the index, Barclays US Long Treasury Index.

Will bonds outperform risk equities or vice versa in the future?

Nobody knows!

Therefore, a balanced asset allocation including both might be the most prudent way to invest.

Larry KehresMount Union Collge
Division III
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