There is a popular notion held, and spread, by commentators and advisors…
Stocks outperform bonds over the long run.
There is only one issue with this assumption; it may not be entirely accurate.
“…according to research by Ibbotson Associates, as reported in “USA Today” last year, bonds actually outperformed stocks over the past 30 years. Ibbotson’s bond index, comprised of a broad cross section of bonds, returned 11.03% per year on average over the previous 30 years, compared with a 10.98% return for the S&P 500 during the same period,” according to James A. Klotz, FMSbonds, Inc. President.
Our friends over at FMSbonds, Inc. discuss this matter in more detail. For more of the story, head over to the FMSbonds website.