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GE Asset Management 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. 800-242-0134 GE 85 REASONS-2011 08-5956