Update 2025: Long-Term Study on Swiss Stocks and Bonds Performance
In the latest update of the long-term study on the performance of Swiss stocks and bonds, it is confirmed that holding Swiss stocks for at least 14 years since 1926 has not resulted in any losses. Graham Secker, Head of Equity Strategy at Pictet Wealth Management, advises maintaining the current investment strategy due to the long-term benefits of stocks, even during unpredictable market phases.
Key Findings
- Since the negative performance in 2022, Swiss stocks and bonds have shown a positive long-term trend.
- Historical data reveals average nominal annual returns of 4.0% for bonds and 7.7% for stocks since 1926.
- Over 85 out of 99 years have had positive returns for a five-year holding period, increasing to 96 years for a ten-year period.
- An initial investment of CHF 1,000 in 1926 would have grown to CHF 1.48 million by the end of 2024.
Balanced Portfolio Strategy
- A balanced portfolio (60% stocks, 40% bonds) since 1926 has yielded an average annual return of 6.6% without any negative returns over a ten-year period.
Conclusion
The analysis supports Pictet’s investment philosophy focusing on long-term strategies to achieve better returns. A diversified portfolio of Swiss stocks and bonds offers low-risk investors stable long-term returns and helps mitigate periods of negative performance.
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