Global equities outpace bonds in ultra-long marathon, shows data

Global equities have delivered 5% annualised returns versus 1.7% for bonds since 1900

Equities are the go-to asset class as far as ultra-long-term returns are concerned. Over the past 123 years, global equities have provided an annualised real return of 5 per cent in US dollar terms, while bonds have delivered 1.7 per cent and short-term bills just 0.4 per cent, according to Credit Suisse’s Global Investment Returns Yearbook 2023.

In collaboration with the London Business School, Credit Suisse has analysed over 100 years of returns for key asset classes in 35 countries.

“Equities have outperformed bonds, bills, and inflation in all 35 markets. Since 1900, world equities outperformed bills by 4.6 per