Equities outperform other asset classes over long periods, shows data

Since 1900, the US has been the best-performing stock market with an annualised real return of 6.7 per cent

Equities have outperformed most asset classes over the long run. Over the last 122 years, global equities have provided an annualised real return of 5.3 per cent in USD terms, versus 2 per cent for bonds and 0.7 per cent for bills, the Credit Suisse Global Investment Returns Yearbook, published by the Credit Suisse Research Institute in collaboration with London Business School, said. 

Equities have outperformed bonds, bills and inflation in all 35 markets. Since 1900, world equities outperformed bills by 4.6 per cent per year and bonds by 3.2 per cent per year. Prospectively, the equity risk premium will be