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Long term returns for key U.S. asset classes Large Company Stocks Small Company Stocks Long Term CorporateBonds
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Long Term Returns Asset Class Average Return: 1926 - 2006 U.S. Small Company Stocks 12.7% U.S. Large Company Stocks10.4% U.S. Long Term Corporate Bonds 5.9%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Value of $1000 invested Long Term Value of $1000 after Return 5 years 10 years 20 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
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Growth in large co. stocks vs large company bonds Long Term Growth in $1000 after Return 5 years 10 years 20 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
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U.S. Large Company Stocks Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Asset class: U.S. Large Company Stocks Time period: 1926 - 2006 Returns for 1 year Best return: 54% Worst return:-43% Gap between best and worst returns: 97%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns: 58%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns: 42%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:21%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:18%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:15%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 10 year periods when U.S. Bonds beat U.S. Stocks (1936 – 2006) 10 year periodReturn 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%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Average returns on large company stocks (1926 – 2006) Time period 1 Year 5 Years 10 Years % ReturnGains Losses Gains Losses Gains Losses Under 5% 3 4 85 62 5 – 9% 7 9 122 20- 10 – 14% 7 5 183 17 - 15 – 19% 8 1 19- 25- 20 – 24% 10 1 9--- Over 25% 22 4 1--- Total 5724 67 1069 2 % of periods with positive return 70%87%97%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Average returns on Large Company Stocks (1926 – 2006) 1 Years 5 Years 10 Years Gains Losses Gains Losses Gains Losses Average Gain / Loss23%(12%)13% (6%)12% (1%) Best / worst return54%(43%) 29% (12%)20% (1%) Best / worst period From 193319311995 1928 1949 1929 To1999 1932 1958 1938 Value of $1000 at end of period $1539$567 $3511 $514 $6223 $915
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U.S. Small Company Stocks Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Asset class: U.S. Small Company Stocks Time period: 1926 - 2006 Returns for 1 year *143 Best return:143% Worst return:- 58% Gap between best and worst returns:201%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:118%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns: 74%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:36%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:24%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:14%
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U.S. Long Term Corporate Bonds Returns from 1926 – 2006 Morningstar Stocks, Bonds, Bills and Inflation Yearbook
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook Asset class: U.S. Long Term Corporate Bonds Time period: 1926 – 2006 Returns for 1 year Best return:43% Worst return:- 8% Gap between best and worst returns:51%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:26%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:25%
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Based on data from Morningstar Stocks, Bonds, Bills and Inflation Yearbook 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 best and worst returns:15%
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