Strategy and Market Commentary: Barron’s-The Bull’s Long Run Is Not Over Yet


We enjoyed reading this article in the January 12, 2015 edition of Barron’s because it aligns with Houston Trust Company’s long-term approach to equity investing. Stocks represent ownership interests in real assets, and we believe in evaluating their performance over the course of a full business cycle. As this article points out, over a rolling 15 year period there have been no intervals of negative returns in equities going back to 1871. And since equity returns appear to be mean reverting, the next 15-year interval might imply strong returns in order to compensate for the still below average trailing 10 and 15 year historical returns relative to the long term average.