Part 2 presents the e book’s 100-year report of US market efficiency. Utilizing the brand new Ibbotson Fairness and Bond knowledge set, it paperwork the 1926–2025 efficiency of US shares, Treasuries, payments, and inflation, whereas additionally analyzing drawdowns, bubbles, yields, bond returns, and the fairness danger premium.
This part of Exponential Wealth: Centuries of Inventory and Bond Returns exhibits the dimensions of long-term fairness wealth creation: From 1926 to 2025, $1 invested in US large-cap shares grew to $14,751 and $1 invested in small-cap shares grew to $32,425. By comparability, $1 invested in long-term Treasury bonds grew to $117, $1 in 30-day Treasury payments grew to $25, whereas inflation rose 18-fold. By wanting past common returns to volatility, crashes, cycles, and danger premiums, Part 2 seeks to assist readers perceive US capital market historical past and set return expectations with out treating previous success as a assure.
