1) The document discusses market volatility over the past 10 years and how it has caused investors to make emotional decisions that can adversely impact long-term investment performance.
2) It analyzes periods like the technology bubble of 1998-1999, the market crash from 2000-2002, and the rebound from 2003-2007.
3) It emphasizes that the market rarely moves in a straight line and that successful investing requires maintaining a long-term focus despite short-term fluctuations and emotional reactions.
The document discusses various types of investments including stocks, bonds, cash, and mutual funds. It provides details on the sources of profit for each type, how they work, their level of risk, and long-term returns. The document also covers concepts like asset allocation, diversification, inflation, and the importance of starting to invest early.
- Global bond markets were disrupted in the quarter as bond yields rose sharply due to expectations that the Federal Reserve would scale back its bond-buying program sooner than anticipated.
- Within fixed income, mortgage prepayment strategies detracted from performance but rebounded later in the quarter, while term-structure positioning and commercial mortgage-backed securities contributed to results.
- In stocks, selection strategies and some currency positions in non-directional strategies hurt returns in the 500 and 700 funds.
Current Conditions Index - Dec16 2009 LplMattGorham
The LPL Financial Research Current Conditions Index (CCI) is a weekly index that tracks the current economic environment. It is composed of 10 economic indicators, including initial jobless claims, business lending, retail sales, and stock market volatility. The CCI is tracking toward LPL's base case forecast for 2009, which anticipates a recession in the first half of the year followed by economic recovery in the second half. The CCI provides a fact-based measure of current conditions to help assess the likelihood of different economic scenarios.
The document provides advice on navigating volatile market conditions, emphasizing the importance of diversification, maintaining a long-term perspective, and not abandoning one's investment plan. It highlights data showing that markets have historically recovered from downturns and notes opportunities currently available in international markets and other asset classes. The overall message is that staying invested and working with a financial advisor can help investors weather periods of market turbulence.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
The document provides capital market assumptions and expected returns for various asset classes over the long term. It estimates that UK equities will return 10-12% annually, fixed income will return 5.5-6.5% annually, and a balanced portfolio of equities and fixed income will return 7-9% annually. It emphasizes maintaining a diversified, long-term investment strategy tailored to one's goals and risk tolerance in order to achieve these estimated returns.
Discounted cash flow techniques are used to evaluate investment projects by estimating relevant cash flows over time and discounting them to calculate net present value (NPV). NPV is the primary criterion for accepting or rejecting projects and considers the timing of all cash flows. When capital is limited, mutually exclusive projects must be ranked according to NPV to allocate funds to the most valuable opportunities. Accurately determining relevant cash flows requires understanding how items like depreciation, working capital, taxes, and capacity utilization affect cash flows over time.
An Appraisal of the Influence of Dividend Policy on Share Pricing of Quoted C...iosrjce
This document summarizes a study that appraises the influence of dividend policy on share pricing of quoted companies in Nigeria. It discusses how dividend policy affects share price and the need for companies to strike a balance between paying dividends and retaining earnings. The study used primary and secondary data as well as chi-square analysis to examine the relationships between dividend policy, economic outlook, and balanced payouts/retentions on share price. It was found that balancing dividend payouts and retained earnings enhances a firm's share price.
Modern Investing: Is it Different this Time?osubucs
This document discusses modern investing and provides arguments for staying invested in the market during periods of crisis and volatility. It presents data showing the S&P 500 typically recovers following geopolitical events and market declines. It also notes the potential impact on returns of missing only a few of the best trading days. The document then discusses asset allocation, determinants of portfolio performance, and introduces Legend Advisory Corporation as a professional money manager that uses an asset allocation model and fund selection process.
A look at how we got into this mess of a financial meltdown, what to do in the midst of it, and how to capitalize going forward. This presentation illustrates the need of hiring a professional advisor to help you manage your emotions during times of uncertainty.
Can Small Cap Stocks Weather the Storm?Susan Langdon
This document summarizes research analyzing whether small cap stocks are well positioned to weather an economic downturn caused by the COVID-19 pandemic.
The research finds that small cap companies' financial characteristics, such as leverage, leading into the crisis were consistent with long-term trends. Historical data also shows no relationship between the rate of small cap company delistings and relative small cap stock performance. While small caps may be more vulnerable operationally, market prices already reflect expectations about future cash flows, including recession impacts. Overall, the research finds that small cap stocks can still deliver higher expected returns even during an economic downturn. Investors are thus advised to maintain a diversified portfolio including small cap stocks.
Wealth advisors LLC pursues a better investment experience for its clients by embracing principles of prudent diversification and avoiding behaviors that often undermine returns, such as market timing, chasing past performance, and overreacting to short-term market movements. The firm recommends low-cost, globally diversified portfolios and advises clients to focus on what they can control - their investment plan, taxes, and expenses - rather than trying to outguess unpredictable markets. By following these disciplined strategies, the firm aims to help clients achieve superior long-term returns.
This document discusses challenges to retirement planning, including changes from pensions to 401(k)s, more retirees working, rising costs of living and healthcare, and uncertainty around Social Security. It then provides an example retirement planning calculation showing the need to save over $1 million. Finally, it emphasizes developing a retirement strategy in consultation with a financial professional to address challenges through diversification, asset allocation, and insurance products.
The document provides an overview and analysis of the DIAS Conservative Income Portfolio, which aims to preserve capital and deliver over 5% annual income. It describes the portfolio's composition, including a 56% allocation to equities focused on high-dividend sectors and a 28% allocation to fixed income, primarily through short-term bond ETFs. It explains that the portfolio's performance should not be compared to stock market indexes due to its unique strategy and composition. The goal of the portfolio is to preserve capital with no losses to principal each year.
The document discusses the time-tested investment approach used by institutional pension plans to manage retirement assets. It notes that pension plans follow a disciplined process, analyzing historic asset class returns to construct diversified portfolios. They seek to reduce risk through asset allocation and diversification techniques. The document then provides examples of asset allocation portfolios and strategies used in the PlanMember Services Program, which aims to provide the same level of investment expertise and portfolio diversification as large pension plans.
The document discusses two trends in China that point to a better economic year in 2016: 1) the growth of China's domestic corporate bond market, which is helping fuel economic growth and improving the efficiency of allocating capital, and 2) signs of improving fundamentals in the property sector, such as increased property sales and developers' ability to issue bonds at lower costs. These trends are seen as mutually reinforcing and having encouraging implications for China's broader economy.
La geología estudia la composición, estructura y evolución de la Tierra. La atmósfera se divide en varias capas: la exosfera en la parte superior, seguida de la ionosfera, mesosfera y estratosfera, y finalmente la troposfera más cercana a la superficie, que contiene el 80% de los gases atmosféricos. Alfred Wegener fue un pionero en el desarrollo de la teoría de la deriva continental.
This document contains various announcements from a newspaper, including wedding announcements for Katie Lauritzen and Tanner Prestegard who are getting married in July 2013, a birth announcement for Solana Maria Valdez born in August 2012, and anniversary announcements for Larry and Jeanine Baringer's 60th anniversary and Delbert and Donna Mandelko's 60th anniversary. It also includes various birthday announcements.
Like a Painting, Suy / Conceição LudovinoSão Ludovino
This document provides information on photographs by several artists, primarily focusing on the work of Edd Carlile. It includes short biographies of Edd Carlile, Miles Aldridge, Karla Nur, Jan Scholz, and Ofir Abe. The photographs featured span various subjects including historical figures, portraits, and tributes to Edd Carlile's style. The document also provides metadata such as title, images, music, duration, and technical credits.
- The document provides financial results for the fourth quarter of 2014 and strategic priorities and guidance for 2015 for a company.
- Key highlights from 2014 include postpaid subscriber growth, improved billing systems, and launching popular devices. Strategic priorities for 2015 include driving further subscriber and revenue growth while reducing costs.
- Financial guidance for 2015 estimates total operating revenues between $4.0-4.2 billion and adjusted EBITDA between $530-630 million.
Conclusiones y recomendaciones de la IX Mesa Técnica Agroclimática (MTA) de Córdoba, Colombia, liderada por el Programa de Investigación de CGIAR en Cambio Climático, Agricultura y Seguridad Alimentaria (CCAFS), la Corporación Colombiana de Investigación Agropecuaria (Corpoica) y la Federación Nacional de Cultivadores de Cereales y Leguminosas (Fenalce)
Un ciudadano catalán expresa su frustración por haber tenido que votar tres veces en consultas y referéndums independentistas en Cataluña, y se pregunta cuántos centros de salud tendrán que cerrarse para pagar "todas estas payasadas" del presidente catalán Artur Mas.
El poema rinde homenaje a la Guardia Civil en su día patronal, la Virgen del Pilar. Describe cómo los agentes arriesgan sus vidas para proteger a los ciudadanos de criminales violentos, a pesar de carecer de protección legal adecuada y de que el gobierno los utiliza como escudo sin preocuparse realmente por su bienestar. El poema elogia el valor y el deber de la Guardia Civil de mantener la seguridad del país.
Ομιλία-Παρουσίαση: Δώρα Τουρτόγλου, Clinical Research Manager, Ιατρικό Τμήμα, AstraZeneca Ελλάς
«Επενδύοντας στις κλινικές μελέτες στην Ελλάδα της κρίσης : Το παράδειγμα της ΑstraΖeneca Ελλάδας»
Las principales características de los sistemas de base de datos incluyen la independencia lógica y física de los datos, la redundancia mínima, y el acceso concurrente por parte de múltiples usuarios. Una base de datos es un almacén que permite guardar y encontrar grandes cantidades de información de forma organizada. Cada base de datos se compone de una o más tablas que guardan conjuntos de datos en filas y columnas.
El documento describe el surgimiento y expansión del Islam desde el siglo VII, señalando que ha usado la fuerza militar para imponerse sobre pueblos cristianos. También detalla varios incidentes recientes de violencia contra cristianos en países de Oriente Medio, África e Indonesia, y sugiere que la inmigración musulmana en Europa y América amenaza con islamizar esas regiones.
The document lists various locations throughout Spain including monasteries, castles, parks, cities, and natural landscapes such as mountains and beaches. Locations mentioned include the Escorial Monastery in Madrid, Monastery of Montserrat in Barcelona, Plaza de España in Sevilla, Peniscola in Valencia, and City of Arts and Sciences in Valencia.
The document discusses the globalization of innovation activities. It provides empirical evidence that international technology flows and collaboration have increased. It also examines the different forms that cross-border innovation can take, such as the international exploitation of innovations, global generation of innovations through multinational firms, and global techno-scientific collaborations. It questions how national and local innovation environments will be impacted by opening up and what policies could help maintain competitiveness in this new environment.
Dos niños llamados Hansel y Gretel fueron abandonados por sus padres en el bosque y encontrados por una anciana que declaró los niños la había matado. La anciana supuestamente quería comerse a los niños. Los niños ahora están bajo cuidado de un instituto de menores y recibiendo apoyo psicológico luego de los traumáticos eventos.
This document provides an overview and analysis of the economic situation and stock market in 2008 during the financial crisis. It discusses the major events that occurred, including bank failures and government interventions. It also looks at where the economy and markets currently stand, and offers recommendations to long-term investors to remain invested and not overreact to short-term volatility.
The document provides an overview of market volatility and downturns. It discusses how declines are normal aspects of the market cycle and outlines historical data on the average length and frequency of different types of declines. It also notes that expansions have typically lasted longer than recessions throughout history.
The document provides an overview and analysis of financial markets in 2009. It discusses the economic turmoil affecting markets, outlines different types of market declines, and analyzes stock and bond returns over time. The document emphasizes maintaining realistic expectations, the benefits of long-term investing, and risks of trying to time the market.
Actions You Can Take In A Volatile Marketbruce_gillen
The document provides strategies for dealing with volatility in the market, including diversifying investments across different asset classes and investment products, rebalancing a portfolio periodically, and using dollar-cost averaging to invest fixed amounts regularly regardless of price fluctuations. It also emphasizes managing emotions by following a long-term financial plan based on fundamentals rather than reacting to short-term market changes.
The document discusses asset allocation and how combining different asset classes such as stocks and bonds can help reduce risk for investors. It provides examples showing that a balanced portfolio with a mix of stocks and bonds experiences less volatility than an all-stock or all-bond portfolio. Additionally, the document discusses how factors like inflation, market timing, and investor behavior affect returns, and why asset allocation is an important tool for meeting investment objectives while managing risk.
Active managers have generally not outperformed the market in either bull or bear markets. During the 2008 financial crisis, actively managed funds underperformed the S&P 500 index by an average of 1.67% on average. Studies from 2008-2012 also found that the majority of active managers failed to outperform their benchmarks across various market categories. While markets have historically delivered positive returns, it is typically a small group of top-performing stocks that drive those returns, making it difficult for managers to consistently pick winners. Diversification can help reduce risk and volatility compared to investing only in stocks, as seen during the 1973-1976 and 2007-2011 periods where a diversified portfolio lost less than a pure stock portfolio.
Unit investment trusts (UITs) are pooled investment vehicles that hold professionally selected stocks, bonds or other securities. UITs offer investors a diversified, buy and hold strategy. Unlike mutual funds, UIT portfolios are static once established, however UITs provide rollover options that allow investors to periodically rebalance and reinvest proceeds from terminated trusts. UITs have grown substantially since the 1970s and now manage over $550 billion in assets, with the majority allocated to equity strategies.
Actions You Can Take After Great Recessionbruce_gillen
This document provides lessons learned from the Great Recession and actions investors can take. It recommends diversifying investments across different asset classes, rebalancing portfolios as needed, using dollar cost averaging to invest consistently, and avoiding emotional reactions to market volatility. Developing a long-term financial plan that considers goals, risk tolerance and taxes can help investors feel more confident during periods of market turmoil. The key is disciplined investing with a strategy, rather than trying to time the market based on emotions.
Actions You Can Take After Great Recessionbruce_gillen
This document provides lessons learned from the Great Recession and actions investors can take. It recommends diversifying investments across different asset classes, rebalancing portfolios as needed, using dollar cost averaging to invest consistently, and avoiding emotional reactions to market volatility. Developing a long-term financial plan that considers goals, risk tolerance and taxes can help investors feel more confident during periods of market turmoil. The key is maintaining a disciplined, balanced approach rather than trying to time the market.
This seminar\'s original version became part of the template for Prudential Securities coordinated marketing programs. Participating brokers saw an increase in business that was three times the firm average.
1. The document discusses critical investor mistakes such as failing to establish an investment strategy, not devoting enough time to learning and research, and not diversifying assets.
2. It provides data showing that while stocks have averaged higher returns than inflation over the long run, individual investors have not achieved the same returns due to poor timing of investments and emotional reactions to market fluctuations.
3. The presentation emphasizes the importance of risk management, adapting portfolios to changing market conditions, diversifying across asset classes and investment styles, and working with a financial advisor.
The document provides Greenspring Wealth Management's 2010 investment outlook presented by Patrick Collins. It discusses important disclosures for investors and summarizes investment performance in 2009. Key themes for 2010 discussed include valuations returning to normal across asset classes, long-term demographic trends favoring emerging markets, increasing taxes to fund government debt, and whether inflation or deflation will emerge.
The document provides steps for learning to invest with confidence. It outlines 5 steps: 1) start with your goals, 2) develop a diversified investment program, 3) understand your risk tolerance, 4) give your investments time to grow, and 5) let your progress build on itself through reinvestment. The document emphasizes the importance of diversification, asset allocation based on risk tolerance, maintaining a long-term perspective, and working with financial experts for guidance.
This document discusses financial planning strategies for women. It begins by introducing the financial advisor and her company. It then discusses the importance of introspection and having the right mindset for investing. It introduces the concept of creating a "PACT" (Prepare, Accumulate, Consume, Transfer) to help organize financial goals. It discusses different investing approaches at various life stages and the benefits of diversification and dollar cost averaging. It provides examples showing the power of compound returns over time and benefits of maintaining a long-term perspective during market fluctuations.
The document discusses financial planning strategies for women. It introduces the "three i's of investing": introspection, investigation, and invitation. Introspection involves examining myths and mindsets around investing. Investigation means creating a financial plan using a "PACT" framework of preparing, accumulating, consuming, and transferring assets. Invitation is taking action by finding a financial advisor and getting advice. The document provides hypothetical scenarios to illustrate asset allocation, diversification, and planning for different life stages from young to retired. It emphasizes the benefits of financial advice for better habits, confidence, and planning.
This document discusses financial planning strategies for women. It begins by introducing the financial advisor and her company. It then discusses the importance of introspection, investigation, and invitation when it comes to investing. It provides tips for setting financial goals and creating a plan to prepare, accumulate, consume, and transfer assets. It also discusses the benefits of diversification and dollar cost averaging. Overall, the document provides guidance to women on developing strong financial strategies.
New perspectives on asset class investingRobUgiansky
This document discusses various investment strategies including active and passive investing. It notes that most active managers underperform their benchmarks over time. It also discusses the benefits of asset class investing over index investing, including lower costs, improved tax efficiency, increased diversification, better risk exposure, and potentially better long-term performance. Charts show that a diversified portfolio following an asset class approach outperformed the S&P 500 since 2000 and was less volatile, and held up better in the face of withdrawals.
Pursuing a Better Investment Experience with Capital AssociatesRobUgiansky
This document outlines 10 key principles for improving the odds of investment success:
1) Embrace market pricing and the information incorporated into prices.
2) Don't try to outguess the market through stock picking or market timing as most funds do not outperform their benchmarks.
3) Resist chasing past performance as it does not predict future returns.
4) Let markets work for you through long-term investing as this has rewarded investors over time.
1) Asset allocation involves dividing investments among different asset classes like stocks, bonds, and cash equivalents to gain exposure to rotating market leaders and help reduce volatility.
2) Maintaining a balanced mix of assets tailored to an individual's goals, time horizon, and risk tolerance can potentially increase returns compared to holding single assets.
3) Asset allocation strategies need periodic rebalancing to maintain the intended risk level as market conditions and individual circumstances change over time.
- The Federal Reserve announced it would sell short-term Treasury securities and buy longer-term securities to lower interest rates and stimulate the economy, which succeeded in lowering bond yields. However, the stock market declined 6.4% as fears grew of a Greek default and slowing global economic growth.
- While price appreciation gets more attention, dividends have accounted for about one-third of stock market returns over 80 years and allowed investors to benefit in both rising and falling markets. Receiving and reinvesting dividends added an average of 2.3% annually to S&P 500 returns over the past decade.
1. Weathering Market Storms Chart a Course to Help Reach Your Goals NOT FDIC INSURED—NO BANK GUARANTEE—MAY LOSE VALUE
2. Important Information The information in this presentation is being provided as general information and is not intended to be legal or tax advice. You should consult your tax advisor for specific questions related to your particular situation. A prospectus contains important information about a fund, including its investment objectives, risks, charges, and ongoing expenses, which an investor should carefully consider before investing. To obtain a prospectus on any Lord Abbett mutual fund, please contact your investment professional or Lord Abbett Distributor LLC at 888-522-2388 or visit our Website at www.lordabbett.com. Read the prospectus carefully before investing.
3. Who We Are and What We Do Lord Abbett is an independent, privately held firm founded in 1929 with a singular focus on the management of money. We view our business as the practice of a craft. We are driven by an unwavering commitment to the stewardship of our clients’ assets.
4. Stewardship and Lord Abbett Stewardship defines the relationship between our firm and our clients. We take this responsibility seriously and hold ourselves accountable for the results. This sense of accountability and responsibility is reflected in how we manage the firm and how we manage money.
5. Stewardship at Work * As of 12/31/07. A Prudent Approach Dedicated Portfolio Teams A proven, time-tested discipline, understanding the risks associated with return, and developing capabilities based on client needs 17 investment capabilities, 132 investment professionals with an average of 16 years of industry experience, managing more than $110 billion in client assets, compensated solely on investment performance, not on assets gathered* Consistency of Our Culture Our Singular Focus An independent, privately held firm that has maintained a commitment to serving clients’ needs since its founding in 1929 “ We believe that an investment firm worthy of the name fosters a sound relationship between the House and the Client.” ― From the Lord Abbett Credo published in The Wall Street Journal, 1929 100% of our revenues is generated by the management of money – eliminating unnecessary distractions and aligning our interests with those of our clients How We Manage the Firm How We Manage Money
6. Our Agenda The market rarely moves in a straight line Market volatility causes investors to make emotional decisions Why invest in 2008? These decisions can adversely affect performance
8. When Will the Market Return to “Normal”? S&P 500 Index Calendar-Year Total Returns for Large Company Stocks – 1926 to 2007 The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Source: 2007 Ibbotson Associates, Inc. All rights reserved. Any copying, republication or redistribution of Ibbotson data is expressly prohibited without prior written consent of Ibbotson. Ibbotson proprietary rights; this slide may not be distributed. Recent volatility is nothing new. Negative returns: 28% (23 years) 12 years 5 years 31 years 11 years 5 years 5 years 13 years -20% or more -20% to -10% -10% to 0% 0% to 8% 8% to 12% 12% to 20% 20% or Greater 1974 2002 1930 1931 1937 1973 2001 1941 1957 1966 1962 1969 1977 1981 1990 2000 1929 1932 1934 1939 1940 1946 1953 1984 1987 1992 1994 2005 2007 1947 1948 1956 1960 1970 1978 1993 2004 1926 1959 1968 1972 1979 1986 1988 2006 1944 1949 1952 1964 1965 1971 1967 1975 1976 1980 1982 1983 1985 1989 1991 1995 1996 1997 1998 1999 2003 1927 1928 1933 1935 1936 1938 1942 1943 1945 1950 1951 1954 1955 1958 1961 1963 Positive returns: 72% (59 years) 82 years of stock market returns
9. The Market Rarely Moves in a Straight Line In any period of market volatility when peaks and valleys are evident, investors must evaluate their circumstances and risk tolerance. While investors can enjoy the benefits of gains in their portfolios, they must also understand that they can suffer losses when the market goes the other way. Successful investing often requires investors to maintain a long-term focus and ignore short-term market fluctuations and the emotional reactions they can cause. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted.
10. S&P 500 Index: Ten Years Ending 12/31/07 Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.
11. A Closer Look at the Last Ten Years Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.
12. A Closer Look at the Last Ten Years “ New Economy” Technology Bubble S&P 500 ® Index 1998-1999 Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment. 21.04% 28.58% Annual Return 1999 1998 Year
13. The Bubble Bursts Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.
14. The Bubble Bursts Economic downturn/ recession Corporate scandals Terrorism War with Iraq S&P 500 ® Index 2000-2002 -47% * Peak to Trough Decline 03/24/2000—10/09/2002 Source: Standard & Poor’s. This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment. *Cumulative performance -22.10% 2002 -11.89% -9.10% Annual Return 2001 2000 Year
15. The Rebound Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment.
16. The Rebound Interest Rate Increases High Energy Prices Terrorism Interest rate cuts S&P 500 ® Index 2003-2007 Source: Standard & Poor’s. *This illustration is based on growth of a $10,000 investment over a 10-year period ended 12/31/07. Results are hypothetical and for illustrative purposes only. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment. 5.49% 2007 15.79% 2006 4.91% 2005 10.88% 28.68% Annual Return 2004 2003 Year
17. Market Volatility has Caused Investors to Make Emotional Decisions Source: Standard & Poor’s and Strategic Insights *This illustration is based on growth of a $10,000 investment over a 10-year period ended December 31, 2007. Results are hypothetical and for illustrative purposes only. **Cash flows associated with the buying and selling of fixed assets. S&P 500® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries. The index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment. Past performance is no guarantee of future results. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Record Inflows Q1 2000 Record Outflows Q3 2002 Record Inflows Q1 2004
18. Emotional Decisions Can Derail Investment Strategies *The “best” days to be invested are defined as the days in which the S&P 500 Index delivered its highest returns for the given periods based on historical data. † Returns are measured based on the S&P 500 Index, which is unmanaged. An investor cannot invest directly in an index. S&P 500® Index is the standard for measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. An index is unmanaged, does not reflect the deduction of fees or expenses, and is not available for direct investment. Past performance is no guarantee of future results.
22. Trailing 10-Year Returns: S&P 500 Index As of 12/31/07. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Represents S&P 500 ® Index. S&P 500 ® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance, this popular index includes a representative sample of leading companies in leading industries. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. The main risk of any investment in a company’s equity or fixed income securities is that values can go up or down depending on market conditions or the performance of the company issuing the securities. Stocks, historically, have outperformed other asset classes over the long term, but tend to fluctuate more dramatically over the short term. Source: Standard and Poors.
23. Rolling 10-Year Returns: S&P 500 Index 1926-2007 Since 1926, there have been 73 rolling 10-year periods. Only 12 of these rolling 10-year periods have had an annual return of less than 6%. Source: Ibbotson Associates 2007. S&P 500® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance, this popular index includes a representative sample of leading companies in leading industries. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted.
24. S&P 500: 10-Year Periods When Return Was Less Than 6% Source: Ibbotson Associates 2007. S&P 500® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance, this popular index includes a representative sample of leading companies in leading industries. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. The historical data are for illustrative purposes only, do not represent the performance of any Lord Abbett mutual fund, and are not indicative of any specific investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. 14.82% 13.14% Average ???? ???? 5.91% 1998-2007 17.87% 17.55% 5.86% 1970-1979 17.75% 16.33% 3.16% 1969-1978 16.65% 15.26% 3.59% 1968-1977 14.59% 14.33% 3.27% 1966-1975 14.58% 14.76% 1.24% 1965-1974 13.72% 18.43% 4.41% 1937-1946 14.76% 13.38% 1.80% 1931-1940 14.15% 13.48% 12.98% 12.48% Next 20-Year Average Return 9.17% 7.26% 9.62% 8.42% Next 10-Year Average Return -0.05% 1930-1939 -0.89% 1929-1938 0.02% 1928-1937 5.86% 1926-1935 Average Annual Return of S&P 500 10-Year Period
25. “I’ll Wait Until After the Election” Since 1926, there have been 20 presidential elections. The average gain during these 17 election years has been 13.43%. The S&P 500 Index has been positive in 17 of these election years. Source: Ibbotson Associates 2007. S&P 500® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance, this popular index includes a representative sample of leading companies in leading industries. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted.
26. Historically, What Has Happened After Election Years? Historically, in the 5 years following an election, the S&P 500 Index has averaged 9.30% per year. Historically, in the 10 years following an election, the S&P 500 Index has averaged 10.25% per year. Source: Ibbotson Associates 2007. S&P 500® Index: Widely regarded as the standard for measuring large cap U.S. stock market performance, this popular index includes a representative sample of leading companies in leading industries. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. Performance data quoted above are historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted.
27. Summary The market rarely moves in a straight line Market volatility causes investors to make emotional decisions In volatility, there is often opportunity These decisions can adversely affect performance
28. What Should I Do Now? Your financial professional can help you with: Formulating an investment strategy Determining the proper asset allocation based on your individual circumstances Selecting the proper investments based on your individual circumstances Navigating volatile markets Asset allocation does not guarantee a profit or protect against loss in declining markets.
Editor's Notes
Good afternoon, and welcome. I am pleased to be here today to speak with you about the markets. Our presentation is entitled “Weathering Market Storms: Chart a Course to Help Reach Your Goals.”