Skip to Content
Rekenthaler Report

Most Stocks Stink

Even if the vast majority of stocks will be poor investments, most equity portfolios will do just fine.


“Do Stocks Outperform Treasury Bills?,” asks Arizona State University’s Hendrik Bessembinder. Well played, professor. The reply to the headline’s question surely can’t be yes, because that would be no story at all; everybody knows that stocks beat Treasuries. But how could it be no? Everybody knows that stocks beat Treasuries.

So much for what we know. Bessembinder’s verdict: “Most common stocks do not outperform Treasury bills.”

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.