Crews Bank & Trust Blog

Chart of the Day: Only 42% of Stocks Outperform

Today’s Chart of the Day was prepared by @CharlieBilello on X using data from a groundbreaking paper in 2022 by Hendrick Bessembinder. It highlights the importance of diversification to make sure you own the stocks that generate most of the wealth in the stock market. We tend to think stocks outperform bonds, but this is not always the case. From 1926 to 2022, only 41% of stocks outperformed Treasury Bills, while the remaining 59% underperformed.