Exhibit 15.1 shows how (cumulative) returns on investments in the equity market index have consistently exceeded returns on investments in government bonds over the past 200 years. This being the case, would you recommend that investors consider not investing in government bonds at all? What would a chart of annual returns on investment in equity and bonds look like—and does its shape influence your recommendation?

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EXHIBIT 15.1 Stock Performance against Bonds in the Long Run, 1801-2010 $100,000,000 $10,000,000 Stocks $1,000,000 Stocks (Inflation-adjusted) $100,000 Bonds $10,000 Bills $1,000 $100 CPI $10 $1 $0 1801 1816 1831 1846 1861 1876 1891 1906 1921 1936 1951 1966 1981 1996 2010