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Don’t Make Me Say I Told You So 81
had returns that were at least three times that of inflation over
this time period.
Many people will look at these figures and say that things are
different now, that stocks haven’t performed as well in recent
times. The following chart shows how stocks have performed
vs. bonds and inflation over a more recent period, from 2009
through 2019.
The Past 10 Years
2010- 2019
Compound annual return
Small stocks 13.6%
$4 Large Stocks 12.4
Government bonds 6.6 $3.57
In ation 1.8
Treasury bills 0.5
$3.22
$3
$2 $1.89
$1.19
$1.05
$1
2010 2012 2014 2016 2018
Source: Morningstar, 2020
Although bonds have had a terrific run over the last decade,
as falling interest rates have pushed the price of bonds higher
and higher, this trend is likely over since interest rates have
nowhere to go but up from current levels.
Chapter 3: You Must Have Growth In Your Portfolio
