Daily Archives: June 24, 2016

Lessons from 125 Years of US Bond and Stock Returns

US investors face the prospect of low returns on their main financial assets: stocks and bonds. Is there any reason to believe that stocks are a worse investment than bonds in the future? The analysis here suggests that stocks will likely yield higher returns than bonds, as they have done in most years. However, there is a significant chance—about 20 percent—that stocks will perform worse than bonds over the next ten years. Investing in stocks is not for the faint of heart.

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