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Stocks outperform bonds in the long run from "summary" of A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition) by Burton G. Malkiel
It is a well-known fact that stocks have outperformed bonds in the long run. This concept is rooted in historical data that consistently shows stocks delivering higher returns compared to bonds over extended periods of time. Stock investments have exhibited greater volatility and risk, but they have also offered higher potential rewards. This phenomenon can be attributed to the nature of the stock market, where companies are able to grow and generate profits over time, leading to increased stock prices. On the other hand, bonds typically provide fixed interest payments and return of principal at maturity, without the potential for significant capital appreciation. Investors who have a longer time horizon and can withstand short-term fluctuations are often advised to allocate a portion of their portfolio to stocks. While bonds can provide stability and income, stocks have hist...
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