|
|
|
Stocks
We have
always believed in stocks as a core investment for the long and short term
investor. Not only have stocks achieved an outstanding historical
performance, but they offer many potential advantages over other
investments. History has shown that the longer an investor remains in
stocks, the more those advantages accrue.
Why stocks?
In
recent years, more investors than ever have turned to stocks - or equities,
as they are called on Wall Street - to build long-term wealth. They have
bought stocks either directly or through planned savings programs such as
401(k) plans or stock purchase programs.
It's
easy to see why. Over the past 74 years, the average annual return on stocks
is more than twice that of long-term government bonds and more than three
times the inflation rate. Over time, stocks have proven to be the best
investment for keeping your money growing faster than inflation.
|
|
|
*Source:
Computed using data from Stocks, Bonds, Bills and Inflation "2000 Yearbook.
Used with permission. 2000 Ibbotson Associates, Inc. All rights reserved.
[Certain portions of this work were derived from copyrighted works of Roger
G. Ibbotson and Rex Sinquefield.] Stock data represents S&P 500. Past
performance is not a guarantee of future results. While stocks offer the
potential for capital appreciation, their value will fluctuate with changes
in market conditions. Treasury bills provide current income and are
government guaranteed as to the payment of principal when due; long-term
government and corporate bonds offer income and return of principal at
maturity.
|
|
|
|