A Case for Waiting Out the Storm

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A Case for Waiting Out the Storm

• Date
• Name

INVESTMENT PRODUCTS NOT FDIC INSURED ? NO BANK
GUARANTEE ? MAY LOSE VALUE
2
Value of 100,000 Invested in the SP 500 January
1, 1973
1 Year, 9 Months Later57,378
3 Months Later95,120
6 Months Later89,631
9 Months Later93,951
12 Months Later85,345
Initial Investment100,000
Source Consulting Group
3
At What Point do You Think Investors Would Have
Given Up and Thrown in the Towel?
4
57,378 Removed from the Market and Reinvested in
an Interest Bearing CD at 5
5 Years Later73,230
2 Years Later63,259
10 Years Later93,462
6 Months Later58,813
12 Months Later60,247
Initial Investment57,378
Source Consulting Group
5
What if You had Kept Your 57,378 Invested in the
SP 500 Instead of Going to Cash?
5 Years Later124,768
2 Years Later103,404
10 Years Later244,437
6 Months Later77,157
12 Months Later79,262
Initial Investment57,378
Source Consulting Group
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Although the statements of fact and data in this
presentation have been obtained from, and are
based upon, sources that the firm believes to be
reliable, we do not guarantee their accuracy, and
any such information may be incomplete or
condensed. All opinions included in this
presentation constitute the firms judgment as of
the date of this presentation and are subject to
change without notice. This report is for
informational purposes only and is not intended
as an offer or solicitation with respect to the
purchase or sale of any security. Past
performance is not a guarantee of future results.
Past performance cannot guarantee future
results. The charts depicted within this
presentation are for illustrative purposes only
and are not indicative of future performance. The
data do not reflect the material differences
between stocks, bonds, bills and inflation, such
as fees (including sales and management fees),
expenses or tax consequences. Common stocks
generally provide an opportunity for more capital
appreciation than fixed income investments but
are also subject to greater market fluctuations.
Corporate bonds, US Treasury bills and US
government bonds fluctuate in value but, if held
to maturity, offer a fixed rate of return and a
fixed principal value. Government securities are
guaranteed as to the timely payment of interest
and provide a guaranteed return of principal. The
principal value and interest on treasury
securities are guaranteed by the US government if
held to maturity. The Standard Poors 500 Index
is a market capitalization-weighted index of 500
widely held common stocks. Investors cannot
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and portfolio holdings. Investors may need to
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INVESTMENT PRODUCTS NOT FDIC INSURED ? NO BANK
GUARANTEE ? MAY LOSE VALUE