Comments on: S&P500 vs CDs (1994-2008)

By: Risk and no return Abnormal Returns

Risk and no return Abnormal Returns — Fri, 07 Aug 2009 13:59:17 +0000

[...] decade for stocks.” Returns showed the broad stock market underperforming bonds and even CDs over decade-long time periods. In short, it was fashionable to trash [...]

By: » Investment Performance: CDs vs. Stocks

» Investment Performance: CDs vs. Stocks — Mon, 20 Jul 2009 12:17:51 +0000

[...] The Big Picture via [...]

By: Chart Junkie: A Picture's Worth ... 7.17.09 | Wall St. Cheat Sheet

Chart Junkie: A Picture's Worth ... 7.17.09 | Wall St. Cheat Sheet — Fri, 17 Jul 2009 19:37:52 +0000

[...] Macro-strategist Barry Ritholtz shows us that if you invested $10,000 in certificates of deposit in 1994, you would have more money than a friend who invested an equal $10,000 into the S&P500 over the same time period. (Source: The Big Picture) [...]

By: Media Appearance: The Kudlow Report | The Big Picture

Media Appearance: The Kudlow Report | The Big Picture — Mon, 13 Jul 2009 21:41:49 +0000

[...] we have seen, CDs beat Stocks from 1994-2009, and Bonds outperformed stocks from [...]

By: » CDs Investing Beating S&P Investing, Since 1994

» CDs Investing Beating S&P Investing, Since 1994 — Mon, 13 Jul 2009 10:27:52 +0000

[...] has beaten investing in the S&P 500, including dividends, according to data collected by The Big Picture. Check out this [...]

By: Are Stocks Always Best for the Long Run? - Gold Speculator

Are Stocks Always Best for the Long Run? - Gold Speculator — Wed, 08 Jul 2009 15:19:59 +0000

[...] has a great graphic comparing the results of investing in two different vehicles on January 1, 1994 here. The graph is shown below: This gives new meaning to the phrase: “Cash is king.” But this story [...]

By: Secondary Sources: Global Crisis, Cash vs. Stocks, Who Pays Taxes | Bizness Geek

Wed, 08 Jul 2009 15:02:58 +0000

[...] CDs vs. S&P: Barry Ritholtz of the Big Picture makes an interesting investment comparison. “Imagine two people who added $10,000 to their investment accounts on January 1st, every year for the past 15 years. One of them is risk averse. They put the money into Certificates of Deposits, getting a few percentage points each year, but the principal is insured. The other is less risk averse; they put money into an S&P500 Index each year. Who comes out ahead? CDs in 2009 yield 1% – 2%, as the market fell and then rally; if the S&P doesn’t perform well for the rest of this year, CDs will have more gains again. As of March, Bonds had outperformed Stocks from 1968 to 2009 — 40 years.” [...]

By: Secondary Sources: Global Crisis, Cash vs. Stocks, Who Pays Taxes - Real Time Economics - WSJ

Wed, 08 Jul 2009 14:34:23 +0000

[...] [...]

By: ben22

ben22 — Wed, 08 Jul 2009 13:21:24 +0000

@Erik,

I have heard of Neely but never really read any of his stuff. I’m going to check him out, thanks much.

By: Eric K

Eric K — Wed, 08 Jul 2009 05:28:57 +0000

Andy was the one who sent me this press release from Neely:
http://www.prweb.com/releases/2009/06/prweb2537224.htm

I noticed last December that once SPX broke down below 1000 in June 2002, it didn’t get above 965 until June 2003 — the Aug 02 high was 962 and the Dec 02 high was 950. That’s what made me expect we’d sell off from the Jan highs. Like 2008, 2002, 2001, and 2000, I think the market will move sideways until September and then sell off hard.