/biz/ - Business & Finance

>>56331991
>Sp is up 14% this year slugger and was up like 22% last year iirc
Are you coping, or just retarded?
Can you read a chart?

Buying S&P right now offers you a 1.5% dividend yield. Assuming the companies that contribute to that yield maintain relevance and hold their position among the largest enterprises in the world, that yield will be maintained over the coming years despite inflation. In other words, its a real return.
However, even long duration TIPS are offering a 2.5% inflation adjusted real yield nowadays. You are paying a premium over the risk free rate, for the privilege of suffering more risk.

Bond buyers a few years ago were pretty dumb: Mostly passive money, forced holders like insurance, and foreign sovereigns looking to hedge future trade flows. Today, stocks are the bubble. I doubt that stocks will ever see sustained nominal losses under our modern monetary policies, but in real terms the underperformance will pile up from here. The odds favor the bonds.