Re: Is the stock market really +e.v.
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but thing is whether it would show a greater profit than say bonds or gold or real estate. in the past it did mostly beat the competition. but not likely over the next 50 years.imo.
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I'm surprised nobody asked you about this comment. And why might that be?
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There are a lot of people speculating that historical (i.e. since 1928 or so) equity returns (I think roughly 6% over the risk-free rate) aren't maintainable long term. My guess is that Ray is referring to this phenomenon.
On second thought, Ray may be saying that that equities are SO overvalued right now, that equities will not even outearn the risk-free rate.
I personally will spread my investments among foreign and domestic equities, foreign and domestic bonds, real estate, and commodities, with semiannual rebalancing. My returns may not be incredible, but variance is more of a pain in the ass in investing than in poker.
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