Finance Historically speaking, stocks have been found to be no more risky than Treasury bonds. Over the past twenty years vast research has been done on this subject. Jeremy Siegel of the University of soda pops Wharton School stated that, The safest long-term investment for the legal transfer of purchasing power has clearly been stocks, not bonds. Since the mid 19 twenties, company stocks have average annual fruits close to 11%, while on the other hand, Treasury Bonds only descendting even with a little over 5%. Currently stocks ar on the rise. Since 1982 the reason for this is the declining risk premium.
The return, or risk premium, that is contend is much less. This is for several reasons. Investors have realized not to be so fearful of the great unpredictability of stocks. Instead of fall stocks in the short run, investors argon learning to hold stick to forth for the long run to see huge benefits. Secondly, Americans are at present keeping stocks in accounts that requi...If you want to get a well(p) essay, order it on our website:
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