Survivor And Success Bias Dominates Equity Market Returns

Every year, Swiss investment bank Credit Suisse publishes its ‘Investment Yearbook,’ a compendium of long term investment data. The booklet provides analysis of investment returns, stretching back 117 years, spanning five asset categories in 23 countries. With such a massive database on display, the Yearbook provides a context in which to put the near-term market movements and the economic environment that influences them.

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Survivor and success bias dominates equity market returns

This year, one of the starkest charts in the Yearbook shows how capital markets have changed over the past 117 years.

At the...