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Subject:  Re: Ric's Advice is Foolish (kinda) Date:  3/29/2001  3:55 PM
Author:  bamboo7431 Number:  153 of 220

Mortgages track the bonds rate plus about 150 basis points. Even with the additional basis points added to mortgages, it does not change the “winning percentage” of stocks.
Bonds bring X% CAGR. Stocks bring Y%. Stocks outperform bonds 59% of the time (one-year periods). Now mortgages are (X+1.5)%. So the percentage of the times stocks outperform mortgages HAS to be lower than the times stocks outperform bonds
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