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Which financial investments have tended to do better than inflation?
Common stocks, held for the long term, probably offer investors the best means of outpacing inflation -- the general increase in the price level of goods and services. Over very long periods of time, stocks have averaged an annual return of almost 11%, outperforming inflation by roughly 7% annually. That’s a far better average real return than you’ll get from any other investment.If you hold a portfolio of common stocks for 20 years, you have a 70% chance of realizing a total return of between 10% and 20% compounded annually.Return to Questions
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