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Chicago Fed Letter, No. 132, August 1998
Whither the Stock Market?

The United States stock market has long provided the highest average return among all financial assets. According to figure 1, stocks earned signifcantly higher average returns over the last 68 years than other financial assets such as corporate bonds or Treasury bills. While the stock returns shown in figure 1 are impressive, investors are more concerned with inflationadjusted returns.



Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

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