5) Siegel also provides that in the years 1941-1981 the bond market lost as much as 62% of its total value after deducting inflation. Actions have never experienced such a large scale loss of value due to inflation.
6) As noted above in this moment of time to invest in bonds against shares is the worst possible because the debt market is already in progress the biggest bull market of the century and a price bubble (I am talking about the U.S.). At the same time the stock market remains undervalued after the crash of 2008 and is a much better alternative investment than inflated to capacity with bonds. As estimated Siegel, 40 years ago was the perfect time to invest in bonds, because profitability was then 6.3%, roughly twice what it now. Meanwhile, at the bottom of the bear market in March 2009 SP500 scored 50% drop from its peak, and specifically the matter from the standpoint of historical regularity now waiting for him to climb the long-term capitalized annual rate of return equal to more than 10%. Bonds has never so much they gave not at any time.
7) at the end of Siegel notes that even after the bear market bottom in March 2009 the market has climbed by 30% up (when he wrote in April 2009, vide below), while the bonds at that time gave a negative rate return as a result of the sharp downturn in prices. April 30, 2009, when Siegel wrote his essay (in the net is in English, all the time here refers to him), a 40-year rate of return on shares SP500 index was measured as much as 15% higher than the 40-year rate of return on bonds in this the compared period. Broader stock market as measured at the time such as the Russell 2000 index, to provide even greater rate of return than the SP500. Of course, in April 2009, SP500 was much lower than it is now so out of the difference is only in favor of increased rates of return on the share of bonds.
CDN
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