Long-term, Stocks Beat Bonds

It's been a rough decade for stock-market investors. But even if you include the past ten years, the long-term return on stocks has been between 6% and 7% per year after inflation. And that return has dominated all other asset classes. Recently, a few investment gurus -- led by Pimco's Bill Gross and Mohamed El-Erian -- have predicted that future returns on stocks will disappoint investors. They've coined the term new normal to represent the slow-growth economy -- and diminished stock returns -- that they believe investors can expect in the future.

Source: Kiplinger


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