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Over The Long Term Equity Real Returns Crush Bonds

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Rupert Hargreaves
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The US equity market may be the largest, most liquid and most recognized in the world, but its returns lag those of other international markets. What’s more, US equities have been more volatile over the past 117 years than some other markets that have generated similar returns.

Over the long term equity real returns crush bonds

According to the Credit Suisse Global Investment Returns Yearbook 2017, which considers the returns of all major asset classes between 1900 and 2017 (year-end 2016), US equities have returned 9.5% per annum since the start of the period, versus 4.9% on bonds, 3.7% on bills and inflation of 2.9%.

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha