Stocks vs Bonds Performance

How do Stocks perform in comparison to Bonds?

The answer is it depends. There are periods when both perform equally well. There are periods when one gives positive performance and the other negative. And again there are periods when both are down.

Let us observe some charts. The chart below is from 2008 to 2020. Stocks (SP500 indicated by the red line) and bonds (blue line) have both given good returns (approx 150%) in this period.

The period from March 2011 to October 2012 was a good period for Bonds. Bonds had a positive return of 42% while stocks were up around 10%.

From October 2016 to Jan 2020, Stocks (+50%) have clearly outperformed Bonds (+17%).

From 25th March 2020 till date stocks (38%) have clearly outperformed bonds (1%)

This outperformance might reduce going forward. Either stocks can correct or bonds can outperform relatively compared to stocks. Time will tell.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: