Download 85 reasons why investors avoided the stock market:Layout 1.qxd

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85 possible reasons why investors may have avoided the stock market
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
Joseph Stalin ruled as dictator of USSR
German economy collapsed
“Roaring 20s” pushed stock market to new highs
“Black Tuesday” - stock market crashed
Hauley-Smoot Tariff Act
Unemployment rate soared; U.S. banks collapsed
Dow hit Depression-era low
Hitler named German chancellor - Nazi terror began
Depression continued
Labor union strikes
Spanish Civil War began
Recession
Hitler annexed Austria
World War II began
Fall of France
Japanese attacked Pearl Harbor
Price controls initiated - shortage of consumer goods
Detroit race riots
D-Day - Allied forces invaded Normandy
Post-war recession predicted
Cold War began
“Red Scare” revisited
Berlin blockade
USSR detonated atomic bomb
Korean War began
Excess income and profits tax
Steel labor dispute - U.S. seized mills
USSR detonated hydrogen bomb
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
Stock market reached new highs
President Eisenhower suffered heart attack
Suez Canal crisis
USSR launched Sputnik satellite
Recession
Castro became dictator of Cuba
USSR shot down U-2 spy plane
Berlin Wall built
Cuban missile crisis
President Kennedy assassination
Gulf of Tonkin resolution
Civil rights demonstrations
Vietnam War escalated
Six-Day War in Middle East
Martin Luther King Jr. assassination
Money tightened - stock market declined
U.S. invaded Cambodia
Wage-price freeze
Watergate scandal began
Arab oil embargo - oil prices tripled
President Nixon resigned from office
Fall of Saigon
Economy still struggled
Stock market slumped
Interest rates rose
Iran hostage crisis - oil prices skyrocketed
Hunt brothers silver market crisis
Interest rates remained elevated
Source: historychannel.com©
For Authorized Dealers and their Current and Prospective Clients.
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Worst recession in 40 years
U.S. invaded Grenada
AIDS virus identified
Economic growth slowed
U.S. bombed Libya; Iran-Contra affair broke
“Black Monday” - stock market crashed
U.S. Savings & Loan crisis peaked
U.S. invaded Panama
Persian Gulf War
Global recession
ERM U.K. currency crisis
Great Midwest Floods in U.S.
Mexican Peso collapsed
Oklahoma City bombing
Barracks hit in Saudi Arabia
Asian financial crisis
Russian default/LTCM crisis
Y2K fears; Dow reached 11,000 for first time
Money tightened - Dot-com bubble burst
World Trade Center/Pentagon terrorist attacks
Corporate accounting issues
War in Iraq
Tsunami strikes Indonesia
Hurricane Katrina
North Korea conducts first nuclear test
Sub-prime mortgage crisis
Global financial crisis
Worst recession in the last half-century
Slow recovery/high unemployment
Hypothetical Growth of a $1,000 Investment2
$ 2,961,652
Source: GE Asset Management
Meanwhile, the S&P 500® Index had an annualized total return of 9.62% for the period 1/1/26 - 12/31/10).1
Hypothetically, if you had invested a lump sum of $1,000 in common stocks at the beginning of 1926, as represented by
the S&P 500® Index, your investment would have been worth $2,961,652 on 12/31/10.2
Year after year, people think of reasons why they should not invest in the stock market.
Over time, the stock market has historically provided attractive returns.
Have you considered equities in your portfolio?
1 The S&P 500® Index is an unmanaged, market capitalization-weighted index of 500 widely held U.S. stocks recognized by investors to be representative of the stock market in general. It is provided to represent the
investment environment existing for the time period shown. The returns shown do not reflect the actual cost of investing in the instruments that comprise it. You cannot invest in an index. Standard & Poor's and S&P
500 are trademarks of the McGraw-Hill Companies, Inc.
2 This is a hypothetical example used for illustrative purposes only. The lump sum investment in common stocks would have reflected the same stocks/weightings as represented in the S&P 500 Index. Additional
assumptions include reinvestment of dividends and no withdrawals. The example does not represent or project the actual performance of any security, GE mutual fund or other investment product. The hypothetical
figures do not reflect the impact of any fees or taxes applicable to an actual investment.
There are many risks associated with investing in the stock market. Investing in individual securities carries greater risk than investing in securities representative
of a broader market industry, sector or index. Diversification helps reduce risk. Market risk is the risk that the value of securities may decline or fluctuate, sometimes
rapidly, in response to changes in company fundamentals, economic and/or market conditions. Stocks may decline in value even during periods when the market
is rising or may underperform other securities or benchmarks on a relative basis. The shorter the investing time horizon the greater the risk that historical returns
may not be realized. In general, the risks associated with investing in stocks is greater than the risks associated with investing in bonds or money market
instruments. Nothing presented herein is intended to constitute investment advice. You should consult your financial advisor prior to making any investment
decisions.
www.geam.com
There is risk of loss from an investment in securities. Past performance is not indicative of future results.
GE Investment Distributors, Inc., Member FINRA & SIPC, is a wholly owned subsidiary of GE Asset Management Incorporated.
For Authorized Dealers and their Current and Prospective Clients.
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