Soccer, Burien, Volusia discussed on The Meb Faber Show

Automatic TRANSCRIPT

To kind of you know at the beginning of modern portfolio theory then absolutely stocks are riskier than bonds bonds or riskier than cash etc by any standard if you think instead of opportunity cost risk which presumably lots of people that took economics once upon a time learned then once you start looking at longer rolling time periods and the consistency indoor dispersion of returns it becomes clear that those two kinda reverse and that stocks are far less risky than bonds that in fact my next usa today call them will be making the point that in the longterm soccer lous risky cash and in the short term of course the reverse is true and everybody everybody gets the short term in their bones because the inherent nature of humanity for volusia reasons is largely myopic but the fact of the matter is in the world in which we live most people are gonna live longer than they think most people are gonna live really long time when you look at long rolling time periods stocks overwhelmingly do better than bonds consistently the burien is mostly by a lot i done the data lots of ways lots of times lots periods but if you go off in if you take your sixty five year old retiree today who's married to a sixty year old woman there's a pretty darn good chance she's gonna live into her nineties and that she's got a thirty plus year time horizon when you look at thirty year time horizons this notion that i'm sixty five i'm retiring so i should become very conservative with my investments and on mostly bonds and cash is objecting yourself to huge risk because you either believe in the power of the holy blessed ism or you go to hell and years and years and years ago i wrote a forbes column that i liked a lot that basically said if you're in that.

Coming up next