The Stock Market Short-Term View One Year S&P 500
(starting value $10,000)

The Stock Market Long-Term View
30 Year S&P 500
 (starting value $10,000)

$14,000



$0
$397,456



$10 ,000

Stock Market Risk
Source: Stocks, Bonds, Bills, and Inflation, 1999 Yearbook, Ibbotson & Associates. This chart depicts Large Company Stock returns for the years 1968 through 1998. Large Company Stock returns are based on the S&P 500 Composite Stock Price Index, a market weighted, unmanaged index of 500 stocks. Post performance is not an indication of future results.
Source: Stocks, Bonds, Bills, and Inflation, 1997 Yearbook, Ibbotson & Associates. This chart depicts Large Company Stock returns for the year 1987.
Stock Market Risk
Yes, the stock market can be volatile. Over the last 30 years it's experienced eight significant "corrections," or downturns. But after every correction, the stock market has recovered and gone on to greater heights. Over time, stocks have beaten the returns of other investments by a healthy margin. According to experts, the worst 30-year period for stock market returns was still better than the best 30-year period for U.S Treasury notes. For those years away from retirement, the higher reward of stocks has historically proved well worth the greater risk.