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Long term returns for key U.S. asset classes

Long term returns for key U.S. asset classes. Large Company Stocks Small Company Stocks Long Term CorporateBonds. Long Term Returns. Asset Class Average Return: 1926 - 2006 U.S. Small Company Stocks 12.7% U.S. Large Company Stocks 10.4% U.S. Long Term Corporate Bonds 5.9% .

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Long term returns for key U.S. asset classes

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  1. Long term returns for key U.S. asset classes Large Company Stocks Small Company Stocks Long Term CorporateBonds

  2. Long Term Returns Asset ClassAverage Return: 1926 - 2006 U.S. Small Company Stocks 12.7% U.S. Large Company Stocks 10.4% U.S. Long Term Corporate Bonds 5.9%

  3. Value of $1000 invested Long TermValue of $1000 after Return5 years10 years20 years U.S. Small Company Stocks 12.7% $1818 $3306 $10926 U.S. Large Company Stocks 10.4% $1640 $2690 $ 7234 U.S. Large Company Bonds 5.9% $1332 $1774 $ 3147

  4. Growth in large co. stocks vs large company bonds Long TermGrowth in $1000 after Return5 years10 years20 years U.S. Large Company Stocks 10.4% $ 640 $1690 $ 6234 U.S. Large Company Bonds 5.9% $ 332 $ 774 $ 2147 Difference in growth 1.7x 1.9x 2.2x 2.9x

  5. U.S. Large Company Stocks Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook

  6. Asset class: U.S. Large Company Stocks Time period: 1926 - 2006 Returns for 1 year Best return: 54% Worst return: -43% Gap between bestand worst returns: 97%

  7. Asset class: U.S. Large Company Stocks Time period: 1928 - 2006 Average annual returns for 3 years Best return: 31% Worst return: -27% Gap between bestand worst returns: 58%

  8. Asset class: U.S. Large Company Stocks Time period: 1930 – 2006 Average annual returns for 5 years Best return: 29% Worst return: -13% Gap between bestand worst returns: 42%

  9. Asset class: U.S. Large Company Stocks Time period: 1936 - 2006 Average annual returns for 10 years Best return: 20% Worst return: -1% Gap between bestand worst returns: 21%

  10. Asset class: U.S. Large Company Stocks Time period: 1940 - 2006 Average annual returns for 15 years Best return: 19% Worst return: 1% Gap between bestand worst returns: 18%

  11. Asset class: U.S. Large Company Stocks Time period: 1945 - 2006 Average annual returns for 20 years Best return: 18% Worst return: 3% Gap between bestand worst returns: 15%

  12. 10 year periods when U.S. Bonds beat U.S. Stocks (1936 – 2006) 10 year period Return on U.S. Return on U.S. large ending corporate bonds company stocks Difference 1935 7.1% 5.9% 1.2% 1937 6.5% 0.0% 6.5% 1938 6.9% - 0.9% 7.8% 1939 6.9% - 0.1% 7.0% 1940 6.5% 1.8% 4.7% 1941 7.0% 6.4% 0.6% 1974 2.1% 1.2% 0.9% 1979 6.2% 5.9% 0.3% 1991 16.3% 15.3% 1.0%

  13. Average returns on large company stocks (1926 – 2006) Time period1 Year 5 Years 10 Years % Return Gains LossesGainsLossesGainsLosses Under 5% 3 4 8 5 6 2 5 – 9% 7 9 12 2 20 - 10 – 14% 7 5 18 3 17 - 15 – 19% 8 1 19 - 25 - 20 – 24% 10 1 9 - - - Over 25% 22 4 1 - - - Total 57 24 67 10 69 2 % of periods with positive return 70% 87% 97%

  14. Average returns on Large Company Stocks (1926 – 2006) 1 Years 5 Years 10 Years Gains LossesGainsLossesGainsLosses Average Gain / Loss 23% (12%) 13% (6%) 12% (1%) Best / worst return 54% (43%) 29% (12%) 20% (1%) Best / worst period From 1933 1931 1995 1928 1949 1929 To 1999 1932 1958 1938 Value of $1000 at end of period $1539 $567 $3511 $514 $6223 $915

  15. U.S. Small Company Stocks Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook

  16. *143 Asset class: U.S. Small Company Stocks Time period: 1926 - 2006 Returns for 1 year Best return: 143% Worst return: - 58% Gap between bestand worst returns: 201%

  17. Asset class: U.S. Small Company Stocks Time period: 1928 - 2006 Average annual returns for 3 years Best return: 71% Worst return: -47% Gap between bestand worst returns: 118%

  18. Asset class: U.S. Small Company Stocks Time period: 1930 - 2006 Average annual returns for 5 years Best return: 46% Worst return: -28% Gap between bestand worst returns: 74%

  19. Asset class: U.S. Small Company Stocks Time period: 1935 - 2006 Average annual returns for 10 years Best return: 30% Worst return: -6% Gap between bestand worst returns: 36%

  20. Asset class: U.S. Small Company Stocks Time period: 1940 - 2006 Average annual returns for 15 years Best return: 23% Worst return: -1% Gap between bestand worst returns: 24%

  21. Asset class: U.S. Small Company Stocks Time period: 1946 - 2006 Average annual returns for 20 years Best return: 20% Worst return: 6% Gap between bestand worst returns: 14%

  22. U.S. Long Term Corporate Bonds Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook

  23. Asset class: U.S. Long Term Corporate Bonds Time period: 1926 – 2006 Returns for 1 year Best return: 43% Worst return: - 8% Gap between bestand worst returns: 51%

  24. Asset class: U.S. Long Term Corporate Bonds Time period: 1928 - 2006 Average annual return for 3 years Best return: 22% Worst return: - 4% Gap between bestand worst returns: 26%

  25. Asset class: U.S. Long Term Corporate Bonds Time period: 1930 - 2006 Average annual returns for 5 years Best return: 23% Worst return: -2% Gap between bestand worst returns: 25%

  26. Asset class: U.S. Long Term Corporate Bonds Time period: 1935 - 2006 Average annual returns for 10 years Best return: 16% Worst return: 1% Gap between bestand worst returns: 15%

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