by Edward McQuarrie
Editor’s Note: This is the first in a series of articles that challenge the conventional wisdom that stocks always outperform bonds over the long term and that a negative correlation between bonds and stocks leads to effective diversification. In it, Edward McQuarrie draws from his research analyzing US stock and bond records dating back to 1792.
CFA Institute Research and Policy Center recently hosted a panel discussion comprising McQuarrie, Rob Arnott, Elroy Dimson, Roger Ibbotson, and Jeremy Siegel. Laurence B. Siegel moderated. The webinar unveils divergent views on the equity risk premium and McQuarrie’s thesis. Subscribe to Research and Policy Center, and you will be notified when the video airs.
Edward McQuarrie:
When I tell acquaintances that I’ve put together the historical record of stock and bond performance back to 1792, the first reaction is generally, “I didn’t know there were stocks and bonds 200 years ago!”
They aren’t familiar with Jeremy Siegel’s book, “Stocks for the Long Run,” which is now in its 6th edition, where he presents a 200-year series of stock and bond returns that he first compiled 30 years ago. ……………..
