Do stocks always win over the long term? Let’s check the math (1 18 26)

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While many investors believe that one specific asset class is a guaranteed winner, historical data shows that market leadership shifts more often than you might expect. Depending on the economic climate, different types of investments take turns at the top while others struggle to break even. Today, we examine the long-term math to reveal how various assets perform over the decades and what it really takes to build lasting wealth.

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

• Do stocks always win over the long term?

• One of Jack Bogle’s most important rules for investors

• Do you need tax-free investments in your portfolio?

• Q&A: What counts as “dry powder” in my overall retirement savings?

• Smart money move of the week

💵 Do Stocks Always Win Over the Long Term?

“Stocks always win in the long run.”

It’s one of the most repeated pieces of investment advice out there. But what does the actual data look like? We went decade by decade, starting from the Great Depression, to see how stocks stacked up against other major asset classes.

In the full article, discover a 10-decade scorecard revealing average annual returns for each asset class, a deeper dive into the hidden data behind the numbers, and a simple takeaway all investors need to understand.

📚️ Recommended Reading

✅ Poll: What’s Your Take?

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “Do you own Berkshire Hathaway stock?” Here’s how you answered:

• BRK.A - (4%)

• BRK.B - (23%)

• Both - (2%)

• None - (71%)

💬 Ask an Advisor

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Andy in North Dakota asks: Can you review dry powder options? For example, I'm looking at a money market through Fidelity. Is that considered dry powder?

Wes Moss says: If I’m looking at your situation, the short answer is that a money market mutual fund at Fidelity is 100% considered dry powder. When I visualize a retirement allocation, I don’t just see a standard pie chart; I see four distinct buckets: Cash, Income, Growth, and Alternative Income. Your dry powder lives primarily in that first Cash bucket, but it also makes up a very large portion of your Income or bond bucket. Because money market funds typically hold ultra-short-term Treasuries or government bonds, they are highly safe and provide the exact stability you need. Beyond just the money market, I consider things like CDs and even short-to-intermediate-term bond funds as part of your dry powder reserves. The key is quality and duration. As long as you are holding high-quality assets — like government, municipal, or investment-grade corporate bonds — and they aren't "long-dated," they serve as your safety net. There is a bit of subjectivity to it, but the goal is to have assets that protect you and remain stable when the equity markets take a dip. For those of you in retirement, I recommend having about three years' worth of these safety assets tucked away in those first two buckets.

💸 Money Tip of the Week

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

This information is provided to you as a resource for informational purposes only and is not to be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Any company names shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. The views and opinions expressed are for educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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