A move from the safest corner of the
Treasury market to a mix of Treasury securities, from bills to
bonds, and the addition of investment-grade corporate bonds and
securities backed by mortgages raises the compound annual return
over the past 31 years to 8.6 percent. The risk factor is 7.4,
more than twice the risk of the safest of the safe, Treasury bills. In
those 31 years, there was a loss in only two years.
Treasury market to a mix of Treasury securities, from bills to
bonds, and the addition of investment-grade corporate bonds and
securities backed by mortgages raises the compound annual return
over the past 31 years to 8.6 percent. The risk factor is 7.4,
more than twice the risk of the safest of the safe, Treasury bills. In
those 31 years, there was a loss in only two years.
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