Below is the 95-year history of stock and bond returns shown in four illustrations. Here are the highlights:
- Stocks, measured by the S&P 500, returned 18.35% in 2020. Bonds earned 7.44% based on the U.S. Investment Grade (Bloomberg) Aggregate index. Both are greater than their 95-year averages.
- The 2020 returns on stocks and bonds are at their modes (most frequent returns).
- Stocks have had their third best decade of returns.
- On a reward-risk basis, stocks have had their second-best decade and bonds have had their third best, but the best of the past seven.
- Details are provided in a table.
1. Stocks, measured by the S&P 500, returned 18.35% in 2020 and bonds earned 8.56%. Both are above their 95-year averages
2. The 2020 returns on stocks and bonds are at their modes (most frequent returns).
