[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

Search:


View post   

>> No.12362647 [View]
File: 10 KB, 632x484, Rplot inversion plus cash.png [View same] [iqdb] [saucenao] [google]
12362647

>>12361627
>>12361327
So this orange line is what happens if you keep your money in cash instead of bonds. Inflation bites pretty hard sometimes.

Also an addendum to my previous post. Those average returns are actually not adjusted for inflation.
Here are the annual, average inflation adjusted returns properly
For switching to bonds in a yield curve inversion:
5.3%
For switching to cash in a yield curve inversion:
2.3%
For simply staying in stocks while reinvesting dividends
.95%
For staying in bonds while reinvesting interest
.19%.

Navigation
View posts[+24][+48][+96]