Stock Market Returns by Asset, 1926-1995
Source: Ibbotson Associates
Stocks = S&P500; Bonds = 20 year Treasury bond
Historically, here is how various combinations of stocks and bonds would have performed, with the number of down years total, the lowest and highest annual return, and the average annual return. As expected, the higher the proportion of stocks, the greater the total return, but the greater maximum 12 month loss, and the greater the number of losing years.
| Mix: | Down Years: | Minimum: | Maximum: | Average: |
| 100% stocks | 11 | -26.5% | 52.6% | 11.9% |
| 75% stocks/ 25% bonds | 11 | -19.4% | 40.1% | 10.5% |
| 50% stocks/ 50% bonds | 10 | -11.8% | 34.6% | 8.9% |
| 25% stocks/ 75% bonds | 9 | -5.8% | 35.6% | 7.2% |
| 100% bonds | 7 | -9.2% | 40.4% | 5.4% |
20 yr govt bond
per Ibbotson Associates
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