Sabri wrote:

> So? How does this contradict what I said?

Here, I go again:

>> in other words, while gold and the S&P pay returns only via capital
>> gains, bonds also pay interest?

Aside from change in prices, bonds pay interest, stock pays dividends,
real estate pays rents, and baseball cards pay... whatever the
monetary equivalent of impressing friends with one's trivia expertise.
 *That* doesn't make bond yields and S&P returns and apples/oranges
comparison.  The prices of bonds, stock, real estate, and baseball
cards all incorporate information about those cash flows.

I know you didn't write the two lines quoted above.  Jim did.  But you
said he was right as long as you ignored S&P dividends.

> You know me personally Julio, so don't you
> remember that I happen to be a quant who knows
> how to price these things quite well?

> From the graph it appears as if the long term
> treasury bonds are doing bad but in reality
> they are doing exceptionally well.  Why do you
> think I put my son's entire college fund into
> mid-term US treasuries (about 5-years) and all
> of his parents' retirement funds are in the
> long-term US treasuries?

How can I argue with that logic, Sabri?  You know me personally as
well.  You know that I have a BA in statistics, an MA in economics, a
Ph D in international macro and finance, a bicycle, and many good
friends.  So?  Does that mean that you (or my other friends, or my
wife and children) have to agree with every silly thing I may utter?
Better not.  You (and my friends, wife, and children) would be in deep
trouble if people thought you were endorsing every silly thing I say
-- because I utter silly things at a very fast pace.
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