Smart Bond Investing—Yield and Return

Historical Returns

 

Like virtually all investment products, bonds generate returns that fluctuate from year to year. Longer-term stocks have enjoyed a performance edge, outperforming bonds by a margin of almost 2 to 1 since 1926. But there is a tradeoff: Stocks' performance edge has come with more uncertainty and bumps in the road. But bonds—even U.S. Treasury bills—can have their ups and downs, too.

 

 

Price Fluctuation Varies by Investment Type

Chart: Price Fluctuation Varies by Investment Type

 

 

For more information, see the Asset Allocation section of FINRA's Smart 401(k) Investing.

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    Figuring Return
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    Bonds and Interest Rates