Section 2 presents the book’s 100-year record of US market performance. Using the new Ibbotson Equity and Bond data set, it documents the 1926–2025 performance of US stocks, Treasuries, bills, and inflation, while also examining drawdowns, bubbles, yields, bond returns, and the equity risk premium.
This section of Exponential Wealth: Centuries of Stock and Bond Returns shows the scale of long-term equity wealth creation: From 1926 to 2025, $1 invested in US large-cap stocks grew to $14,751 and $1 invested in small-cap stocks grew to $32,425. By comparison, $1 invested in long-term Treasury bonds grew to $117, $1 in 30-day Treasury bills grew to $25, while inflation rose 18-fold. By looking beyond average returns to volatility, crashes, cycles, and risk premiums, Section 2 seeks to help readers understand US capital market history and set return expectations without treating past success as a guarantee.
