Very nice table showing the historical return of stocks, bonds (US Treasury bonds/debentures) and cash.
How you can see putting money under the mattress is a bad deal.
Bonds performed much worse than stocks.
In the first world, there is no way, actions are the best investment in financial assets, in Brazil, we know that the thing is different, the fixed income in Brazil pays very well and is the main competitor of the shares.
Look at the table below and try to understand it:
Maybe if Brazil improves one day towards the first world the fixed income will pay less and the shares will pay more, or not, the fact is that we are the country of fixed income, yes, and this is not even close Change in the short term.
Think of a long-term horizon, 30 years, 40 years, 50 years of investments. Will the fixed income still blow as much as it does now? Is it safe to leave a patrimony of a lifetime all backed by money and promises of bank and government payments? What if the government solves the tune of fixed income as it has done a few times?
Either way, be prepared and diversified into various assets of various classes to not have a big thump and lose the savings of your life. Personally, I feel more relaxed investing in stocks. I am currently 100% in stocks but I have already decided to put the new contributions in some fixed income, reaching a certain amount I will go abroad.
Finally, the evolution of my May dividend.
May 2014 I received R $ 171.76.
May 2015 received R $ 581.89.
May 2016 I received R $ 1496,73.
Nice growth, right?