The world of investing is finding the balance of what to invest with your risk tolerance, return desires and timing needs so you can work toward achieving your investing goals. There are many ways to diversify your portfolio to match your risk tolerance and investing goals.
While any asset class can have the best performance in any given year, history has shown that stocks tend to outperform bonds as well as other fixed investments. There may be volatility over time, but in the long run, stocks are most likely to outperform other asset groups.
The following chart shows the comparison between stock and Treasury bond returns over the past 20 years: