20 year return on asset classes

This table shows the return on equities, bonds and treasury bills over the past 20 years in various countries - nominal return, inflation and real returns. Globally, equities earned a real return of 5.5% (after adjusting for inflation) compared to 1.6% for bonds. For the long term investor, it is better to invest in equities, as it provides a higher return than bonds or treasury bills. The risk of long term investments can be mitigated by the investment strategy explained in my book, Practical Guide on Financial Planning.