Common Stock as an Inflation Hedge:
S&P LT Bonds LT Gov’t Bonds T. Bills CPI
Last 10: 14.8% 11.3% 11.9% 5.6% 3.5%
Last 20: 14.6% 10.6% 10.4% 7.3% 5.2%
Last 30: 10.7% 8.2% 7.9% 6.7% 5.4%
Last 40: 10.8% 6.8% 6.4% 5.7% 4.5%
Last 50: 11.9% 5.8% 5.3% 5.7% 4.4%
Source: Ibbotson and Sinquefield, “Stocks, Bonds, Bills and Inflation 1997 yearbook,” Chicago.