Wednesday, 9 May 2012

Goldman Sachs: Stocks Have Been A Better Risk-Adjusted Investment Than Housing Since 1890

'Goldman Sachs has been producing a lot of bullish equity research, despite chief U.S. equity strategist David Kostin's bearish view on stocks.  Last month, Goldman's Peter Oppenheimer published a massive report titled The Long Good Buy that argued stocks were insanely cheap relative to bonds.

In a new report today title Houses vs. Stocks: Who Wins the Long-Run ‘Sharpe’ Race?, Goldman's Jose Ursua argues that stocks are way better than housing on both an absolute returns basis and risk-adjusted returns basis.

One of the most common risk-adjusted returns measures is the Sharpe ratio.  Simply put, it's the excess returns divided by the standard deviation of excess returns. For long-term investments like housing or stocks, Ursua argues "What matters are risk-reward tradeoffs."

Here's a summary of his report...'

Read more:


News Brought to you By:


745a Europort

Gibraltar GX11 1AA

T +350 200 40303

F +350 200 51795

Forex Brokers:  

Stock Brokers:  


Investors Europe, a stock, futures & forex broker regulated by the FSC. Read our disclaimers on spot forex, on the diffusion of third party products, news, services and U.S. Persons

★★★Social Infrastructure Planning and Digital Marketing Services by SEOextraordinaire★★★

Posted via email from Gibraltar

No comments: