Trying to extrapolate something into the future, it seems to me that the relative performance of equities vs bonds will more likely produce the larger premium for risk that has been seen over the last 50 or so years.
Not because stocks have gotten better, but because bonds have recently gotten worse.
In the past, a bond was like a solemn oath that could only be broken by circumstances truly beyond the issuer's control. Now, bonds are treated like "I'll pay you back if it's convenient for me." The GM bankruptcy might be an example. Governments that inflate their way out of debt obligations would be another example.
Agree or disagree?
All predictions are noise.
From Bernston at BH:
Impulse is the greatest enemy of the investor. Wise investors make decisions slowly. Changes are made over the course of years. There is no portfolio decision that cannot be put off for at least a year.
Building a portfolio is like growing an oak tree. It's slow and boring. Nothing is time sensitive.
Few portfolio decisions matter. Spitball the rest.
Be skeptical. The wise investor has measured expectations. He knows that markets are incomprehensible and that he understands little.
Never sell investments. (Exceptions: Tax-loss harvesting. Rebalancing a very large portfolio. Distributions in retirement.) This encourages discipline when adding investments and making allocation decisions. Investments should be held for decades.
Plan for the worst.
Love uncertainty like an old pair of shoes. Long-term and short-term uncertainty are not the same. Do not confuse them.
Diversification is the only rational response to uncertainty.
Precision and optimization are also enemies.
The strongest trees bend with the wind. Wise investors see this and adopt flexible goals.
Contentment is strength and greed weakness.
Simplicity is said in many ways.
Everything has diminishing marginal returns. Examples: volatility, equity allocation, rebalance frequency, small tilting, value tilting, and diversification.
Investments are like a forest: they grow best when undisturbed.
We don't know whether it will rain or shine, so the wise investor packs his bags for any weather.