Among major asset classes, U.S. stocks have historically delivered the strongest long-term returns. Since 1928, equities generated annualized returns of 10%, outpacing gold at 5.6%, the U.S. 10-year Treasury bonds at 4.5%, and real estate at 4.2%.
Cash, represented by 3-month Treasury bills, provided limited growth at 3.4%, only modestly above the average 3% inflation rate.
The power of compounding has created a substantial advantage. A hypothetical $100 investment in U.S. stocks in 1928 would have grown to nearly $1.2 million compared to just $2,578 in cash-like investments. Thus, investors who remained invested in stocks through recessions and wars were ultimately rewarded compared to those who relied on more defensive assets.
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https://www.capitalgroup.com/advisor/pdf/shareholder/MFGEOS-473-1091938.pdf