Historically, equities outperformed bonds (6.5% vs. 2.0% p.a. in real terms). That’s not surprising at all, but it is less understood that equities actually underperformed bonds over the last 18 years. According to Credit Suisse’s Global Investment Returns Yearbook 2018, equities generated only 3.5% real returns per year vs. bonds’ 5.0%.
Last 100 Years for the Active Equity Investing
Last 100 Years for the Active Equity…
Last 100 Years for the Active Equity Investing
Historically, equities outperformed bonds (6.5% vs. 2.0% p.a. in real terms). That’s not surprising at all, but it is less understood that equities actually underperformed bonds over the last 18 years. According to Credit Suisse’s Global Investment Returns Yearbook 2018, equities generated only 3.5% real returns per year vs. bonds’ 5.0%.