Monday, May 11, 2009

Why Trade Part II ?


I was reading the Australian Financial Review last weekend and came across an article on the return of Bonds v Shares. What a shocker - turns the conventional wisdom almost totally on it's head of risk v return. There has been no payoff for taking excess risk in Shares if you are a managed fund or index investor.
I don't like the lack of control in these forms of investment and the above graph reinforces my beliefs.

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