Value Line University

Stocks or Bonds?

The following table shows the average total return of stocks, as shown by the S&P 500 Stock Index, and corporate bonds, as shown by the Salomon Brothers Bond Index, over various periods of time. Notice that in every 10 year period except the 1970s, stocks outperformed bonds.

PERCENTAGE RETURNS
	STOCKS		BONDS
	Total	Per Year*	Total	Per Year*
The 1950s	486.5%	19.4%	10.5%	1.0%
The 1960s	112.1%	7.8%	18.1%	1.7%
The 1970s	76.8%	5.9%	83.1%	6.2%
The 1980s	398.1%	17.4%	240.2%	13.0%
The 1990s	432.3%	18.2%	132.4%	8.8%
* Compounded

Navigate VL University

Introduction

Part 1: Investment Basics

Different Investments

Part 2: Investment Strategies

Part 3: Building a Portfolio

Part 4: Studying a Stock