Stocks are Better Than Bonds

Investor psychology is obviously a huge factor in markets, but I feel like many retail traders / people outside of the industry don't think about how these biases and influences to decision making can be used when investing.

Having done a fair bit of research into behavioural econ, I wanted to share this video on a key theory for why stocks return so much more than bonds on a risk adjusted basis i.e. solving the equity premium puzzle that has persisted over the last century.

Let me know your thoughts.


https://youtu.be/7r5uahuCRms

 

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