Stocks for the Long Run?

Are stocks the best bet for the long haul? In a paper to be published in the Journal of Finance, two researchers question the long-held investing assertion. “There have been periods in which stocks underperformed [Treasury] bonds and bills over 30 years, [and] 40-year periods in which stocks barely [outperformed] bonds,” Lubos Pastor of the University of Chicago Booth School of Business, one of the study’s authors, tells MarketWatch’s Howard Gold. Gold says Pastor and… Read More

Wharton Prof Duel: Siegel vs. Stambaugh

Several weeks back we highlighted a new study that found stocks are actually more risky in the long run than they are in the short run. Today in an interview posted on the University of Pennsylvania’s Knowledge@Wharton web site, two Wharton School professors — Robert Stambaugh, one of that study’s co-authors, and Jeremy Siegel — talk about many of the issues the study raises for stock investors, as well as the current market conditions. Among… Read More

Stocks for The Long Run — Riskier than Stocks for The Short Run?

In his latest column for The New York Times, Mark Hulbert highlights an interesting new study that examines the concept of long-term risk in the stock market. The study, performed by University of Chicago Booth School of Business Professor Lubos Pastor and Wharton School Professor Robert F. Stambaugh, questions whether the concept of mean reversion really indicates that stocks are less risky over the long run, a theory that has been espoused by many investors… Read More