When Rob Arnott revealed in 2009 that bonds had outperformed stocks over the preceding 40 years, most people were shocked. Arnott, founder and chairman of the California money manager Research Affiliates, showed that an investor buying a constant-maturity, 20-year bond in 1968 enjoyed a higher total return than he would from an S&P 500 portfolio.
Stan and Hildy Richelson, though, were not in the least surprised. For the last 25 years, they have steadfastly advocated the all-bond portfolio, arguing, among other things, that bonds offer better risk-adjusted returns than stocks.
History proved them right.
This second edition of their book contains substantial new material, including a history of bonds, a chapter devoted to financial planning ...