Stat of the Week

From Hendrick Bessembinder’s recent white paper.

While the overall stock market outperforms Treasury bills, most individual common stocks do not. Of the nearly 26,000 common stocks that have appeared on CRSP since 1926, less than half generated a positive holding period return, and only 42% have a holding period return higher than the one-month Treasury bill over the same time interval. The positive performance of the overall market is attributable to large returns generated by relatively few stocks. When stated in terms of lifetime dollar wealth creation, one third of one percent of common stocks account for half of the overall stock market gains, and less than four percent of 28 common stocks account for all of the stock market gains. The other ninety six percent of stocks collectively matched Treasury-Bill returns over their lifetimes.

4 Responses to Stat of the Week

  1. Sean Duffy says:

    4% of 28 stocks? So…1 stock out of 28? Looks like a misprint?

  2. Mark19 says:

    Hi, do you allow guest posting on systematicrelativestrength.com ? :) Please let me know on my email

  3. It depends what the team wants. This is not good at all as the tubs must have shown earlier signs of dilapidation.”Yeah,” Soriano said. That’s because it’s located in a renovated 1850s Baronial building. There are product descriptions. To begin with,nike free 5.0 masculino, allow us to think about a situation in which income is recognized in the same period as that in which the associated increase of cash occurs. As opposed to soda pop, water and juice helps to keep your body moist.Finding Hitch

Leave a Reply

Your email address will not be published. Required fields are marked *