Needles in a Stock Picker’s Haystack: Can You Find the 4%?
We all know that over long time periods, stock returns have exceeded bond returns, and bond returns have exceeded Treasury bill returns. From 1926 through 2016, according to data compiled by Ibbotson Associates, large capitalization stocks returned 10% compounded annually, long-term corporate bonds returned 6% compounded annually, and Treasury bills returned 3.5% compounded annually.
Johnson, Robert R. PhD, "Needles in a Stock Picker’s Haystack: Can You Find the 4%?" (2017). Faculty Publications. 800.