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Steady 5% Returns In Portfolio Of Half Stocks And Half Bonds?

Wednesday, November 30, 2011 - 7:12 AM
From The New York Times
Vanguard created a model portfolio divided equally between stocks and bonds, and compared the returns in periods of economic expansion and recession. It found that “the average real returns of such a portfolio since 1926 have been statistically equivalent regardless of whether the U.S. economy was in or out of recession.”

The average returns (after inflation) was found to be over 5%. Of course to use this study to build a portfolio, you have to assume future returns will match historical returns.
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Ken TuminKen Tumin5,468 posts since
Nov 29, 2009
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