World Markets Review
Investment insights from Capital Group
Stocks and bonds have done well in inflationary periods
Average annual returns at different inflation rates (1970-2021)1
1. Data as at 31 October 2021 in US dollar terms. Sources: Capital Group, Bloomberg Index Services Ltd., Morningstar, Standard & Poor’s
All returns are inflation-adjusted real returns. US equity returns represented by the Standard & Poor’s 500 Composite Index. US fixed income represented by Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index from 1 January 1970 to 31 December 1975, and Bloomberg U.S. Aggregate Bond Index from 1 January 1976 to 31 October 2021. Inflation rates are defined by the rolling 12-month returns of the Ibbotson Associates SBBI U.S. Inflation Index.
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