TY - JOUR T1 - The Stock Market’s Little Shop of Horrors: <em>And You Thought the Aftermath of 1929 Was Grim</em> JF - The Journal of Investing SP - 6 LP - 12 DO - 10.3905/JOI.2009.18.2.006 VL - 18 IS - 2 A2 - McQuarrie, Edward F Y1 - 2009/05/31 UR - https://pm-research.com/content/18/2/6.abstract N2 - Do stocks always beat bonds? Do stocks necessarily beat inflation by 6%–7% over long periods? Data from select foreign markets and pre-1926 U.S. markets call these shibboleths into question. Better to regard stocks as always a risky investment, independent of holding period, and regardless of immediate prior returns. Thus, buying after stocks have declined by 40% is no panacea. And, severe declines in excess of 40% are more common than with conventional asset allocation models, as the halcyon decades following the Depression might suggest.TOPICS: Portfolio management/multi-asset allocation, performance measurement, volatility measures ER -