The results from last weeks study are shown below. The temptation to follow Mr. Lynchs' advice is buttressed by logic as well as Mr. Lynch's reputation as a master stock picker.
Stocks DO provide higher returns than bonds.
Bonds, particularly bond funds, have not met investor expectations. The problem isn't logic. In two periods, the average annual return was LESS than 7 percent. Note that even these figures are averages. In fact, there were individual years where the returns were negative and other years where the returns were very high.