BankToons · Markets
Bonds vs Stocks: Could a Safe Bond Beat the Market for 10 Years?
When comparing bonds vs stocks, safe government bonds could beat the stock market for the next ten years. In October of 2026, a 10-year Treasury bond paid about 5.3 percent a year, the most in about 20 years. In 2021, it paid about 1.5 percent.
Stocks usually win. The S&P 500 has averaged about 10 percent a year, but Bank of America's math says it may return under 5 percent a year for the next ten. Stock prices already count on record profit growth. For the first time in years, it is a real race.
Our take: If all your savings sit in stocks, look at what safe bonds pay now. Five percent sounds boring, but this decade, boring might actually win. This video is for education, not personal financial advice.
Bonds vs stocks: the next 10 years
For the next 10 years, safe government bonds could beat the stock market.
The 10-year Treasury yield hits 5.3%
In October of 2026, a 10 year Treasury bond paid about 5.3% a year. That is the most in about 20 years.
Back in 2021, it paid about 1.5%.
Why stocks may return under 5%
Stocks usually win. The S&P 500 has averaged about 10% a year. But Bank of America's math says it may return under 5% a year for the next 10.
Why? Stock prices already count on record profit growth.
Will bonds beat stocks?
So, will bonds beat stocks? Nobody knows. But for the first time in years, it is a real race.
Our take
Here is our take. If all your savings sit in stocks, look at what safe bonds pay now. 5% sounds boring, but this decade, boring might actually win.
