New Cause for Caution on Stocks

Fresh research challenges the historical rate of return on equities. Look to bonds for more balance

A few catchphrases sum up the 1990s: Bill Clinton's "It depends on what the meaning of the word is is," Forrest Gump's "Life is like a box of chocolates"--and Jeremy Siegel's "stocks for the long run." Siegel, 56, a professor at Wharton, turned his catchphrase into the title of a best-selling 1994 book, in which he showed that stocks had trounced bonds and cash over every 30-year period from Thomas Jefferson to William Jefferson Clinton. Siegel's book coincided with--and helped fuel--a long bull market, and America became a buy-and-hold nation. In 1994 stock funds held $853 billion; by 1999 they had...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!