Long-term average equity returns have averaged 10% to 12%, while long-term average bond returns have averaged 4% to 6%. However, equity returns are much more volatile than bond and other fixed income returns, i.e., equity prices can drop as much as 50% in any given year, which is why an investor in equities must be willing to leave their money invested for 10 years to benefit from the eventual market recovery, and higher long-term average equity returns. For more information, please see Investment Piece #4 Investment Risk, as well as Investment Piece #5 Risk & You.