hisah wrote:Nabwire wrote:We told you guys, Tbills are a sham!! Well not really a sham, but you have to factor in time value of money and downward rate adjustments. Equities always perform better.
Tbills hapana sham, but just a short term (12mths max) defensive tool for investors when the central planning team screws up the macroeconomics. Equities will always out perform money markets except during econ meltdown periods.
debt instruments typically bear a lower
risk.Hence, in the long-term, returns on equities may be higher than
on bonds (though bonds may outperform equities for more prolonged times during this period). This
additional return generated on equities, compared with bonds, is known as the equity risk premium.
possunt quia posse videntur