Frontier ETFs: Balancing Liquidity Risk, Concentration Risk
Thursday, December 31st, 2009
Gary Gordon submits:
Just about everyone is familiar with Jeremy Siegel’s book, Stocks For The Long Run. ETF investors are probably aware that the good professor is also a co-founder of fund provider, WisdomTree.
Yet, after the worst decade on record for the S&P 500, with a -1.2% annualized return for the 2000s (dividends included), it’s not too difficult to make a case for stocks going forward. In fact, in the decade following the -0.1% annualized return of the 1930s, stocks returned 9.2% and 19.4% compounded over the 40s and 50s, respectively. After the turbulence and trauma of the 5.9% of the 70s, the S&P 500 annualized at 17.5% and 18% in the 80s and 90s.
