Ibbotson SBBI ® ®

Stocks, Bonds, Bills, and Inflation 1926–2014

100,000

$27,419

10,000
$5,317
Compound Annual Return

Small Stocks 12.2%

Large Stocks 10.1
1,000 Long-Term Govt Bonds 5.7
Treasury Bills 3.5
Inflation 2.9

$135
100

$21
$13
10

$1

Start of low inflationary period

May Day, the deregulation
Tet offensive in Vietnam
Securities Exchange Act

Gramm-Leach-Bliley Act

Wall Street Reform Act

General Agreement on

U.S. credit downgrade

U.S. Treasury-Federal

Emergency Economic
Gold window closed
Stock market crash

Stock market crash

of brokerage fees

Start of Gulf War

JFK assassinated
Sputnik launched

Arab oil embargo

Tariffs and Trade

Stabilization Act
September 11th
Reserve Accord
Pearl Harbor
Steagall Act
Glass-

0.10

1926 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Past performance does not guarantee future results. Hypothetical value of $1 invested at the beginning of 1926. Assumes reinvestment of income and no transaction costs or taxes. This data is
for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index.
 Ibbotson SBBI
Stocks, Bonds, Bills, and Inflation 1926–2014

An 89-year examination of past capital market returns provides historical insight into the performance charac- Government bonds and Treasury bills are guaranteed
by the full faith and credit of the United States government
teristics of various asset classes. This graph illustrates the hypothetical growth of inflation and a $1 investment as to the timely payment of principal and interest, while
in four traditional asset classes over the time period January 1, 1926 through December 31, 2014. stocks are not guaranteed and have been more volatile than
the other asset classes. Furthermore, small stocks are
more volatile than large stocks, are subject to significant
Large and small stocks have provided the highest returns and largest increase in wealth over the past 89 years. price fluctuations and business risks, and are thinly traded.

As illustrated by the image, the fixed-income investments provided only a fraction of the growth provided Source: Small Stocks—represented by the Ibbotson® Small
Company Stock Index; Large Stocks—Ibbotson® Large
by stocks. However, the higher returns achieved by stocks are associated with much greater risk, which can be
Company Stock Index; Long-Term Government Bonds—
identified by the volatility or fluctuation of the graph lines. 20-year U.S. Government Bond; Treasury Bills—30-day U.S.
Treasury Bill; Inflation—Consumer Price Index.
PRIYL01

Foresters FinancialTM and ForestersTM are the trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries, including Foresters Financial
Services, Inc. Securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. Insurance products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters.
Foresters Financial Services, Inc. does not provide legal, tax or estate planning services. All investing involves risk, including the risk that you may lose money.

©2015 and earlier, Morningstar. All Rights Reserved. Underlying data is from the Ibbotson SBBI Yearbook, by Roger G. Ibbotson and Rex A. Sinquefield. Updated annually. 2044393
VLCM-OC-292E
 Risk & Return 1995 - 2015
700.00

600.00

500.00

400.00
Value

S&P 500
3 Month T Bill
10 Year T Bond
300.00

200.00

100.00

0.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015