50 Years in the Market: Roads Travelled & Lessons Learned

1. Plus  50 Years in the Market: Roads Travelled & Lessons Learned Prepared By: David J. Pangborn, MBA Private Wealth Counselor

2. 2008: A (Late) Happy Birthday Call I get a call from 82 year old retired military man, and grumpy know-it-all...Herb Pangborn...with some fatherly advice for my 50th birthday (which was last November!)

3. 1957: A Less Than Hospitable Entry

4. 1957: Markets & Headlines • Markets: • The Canadian stock market is down 23%. • Headlines: • The U.S. Post Office goes bankrupt and halts mail delivery. • The Suez Canal Crisis; Soviet Union launches "Sputnik" and sparks fears of nuclear war; President Eisenhower suffers a stroke. • Elvis Presley is drafted into the U.S. Army.

5. 1974: Off to University

6. 1974: Markets & Headlines • Markets: • World stock markets drop 28% (following a decline of 8% the previous year). • Typically "safe" bonds have lost 6% of their value. • Inflation hits an all-time high over 12%. • Headlines: • OPEC Oil Crisis; worst recession since the Great Depression of 1929. • India successfully tests it's first nuclear bomb; Watergate topples President Nixon. • ABBA wins the European Song Contest.

7. 1981: Getting My MBA

8. 1981: Markets & Headlines • Markets: • The Canadian stock market loses 12%. • Bonds drop by more than 3%. • Inflation exceeds 12% (the highest since 1974). • Interest rates are over 18% (an all-time high). • Headlines: • Deep recession and massive mortgage defaults. • The Iran Hostage Crisis, political violence in Poland, Spain, Italy; and assassination attempts on President Regan, Anwar Sadat, and Pope John-Paul II. • The progressive-rock band "Yes" splits up.

9. 1987: Licensed to Sell (Mutual Funds)

10. 1987: Markets & Headlines • Markets: • Black Monday: Global stock markets plummet by 30% (worst single day since the Depression). • Bonds return less than ½% after a 3-yr average 22%. • Headlines: • Multiple bankruptcies in the U.S. banking and investment sector, and American Motors goes under. • Iraq attacks a U.S. warship killing 40; massacres in India and Saudi Arabia. • Liberace passes away.

11. 1994: Securities & Marriage-Licensed

12. 1994: Markets & Headlines • Markets: • The Canadian stock market loses 3%. • Bonds lose more than 9% (worst-ever). • Headlines: • NAFTA: death of Canadian economy predicted. • Massacres in Serbia, Rwanda; terrorist attacks in Israel, Brazil, Japan and U.S. • Justin Bieber is born.

13. 2001: Welcome to Great-West Life

14. 2001: Markets & Headlines • Markets: • The Canadian stock market drops 15%. • Headlines: • Enron bankrupt: largest in U.S. history. • The World Trade Centre terrorist attack; U.S. invades Afghanistan; massacres in Israel and Bosnia. • George Harrison dies.

15. 2007: I Turn 50 (and Another Disaster)

16. 2008: Back to the Future • Markets: • The Canadian stock market drops 35% (worst year). • Oil hits $100/barrel for the first time. • Headlines: • Sub-prime mortgage crisis, massive home defaults in U.S., numerous banks, investment, and car companies bankrupt worldwide. • Massacres in Israel, Congo. • Taylor Swift wins Album of the Year.

17. 2013: Where to From Here? • Markets: • All-time low interest rates (4-yr average about ½%). • Lingering nervousness following 2008 and 2011 stock market declines. • Headlines: • Greece and Cyprus bankrupt, Euro Crisis. • Iran embargo, North Korea nuclear threats, Boston Marathon attack. • Justin Bieber wins a Juno.

18. What Could Have Been?

19. What About the Alternatives?

20. Lessons Learned