Over time, stocks have greatly outpaced Treasury bonds.

Why Stocks?

Over time, the returns on stocks have greatly outpaced those of Treasury bonds and Treasury bills. Despite this overall trend, stocks have gone through extended periods of volatility and decline. Investors who hope to earn higher returns by investing in stocks must accept the associated risks.

Graph showing the difference between stocks, bonds, and bills Graph showing the gains and losses for the S&P 500

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After making a decision regarding asset allocation between stocks, bonds and bills, investors must make asset selections within each category. Investors who choose poorly will receive returns worse than the category average. Those who choose well will receive above-average returns.