The 2000s - The Times That Tried Investors' Souls
December 31, 2009
By: Taylor Graff, Senior Associate

Disclosure Statements:

ⁱIndices used for return of U.S. stock market:

• 12/31/1899-12/31/1927:  Price Return – Dow Jones Industrial Average; Dividend Return – NYSE Dividend Yield from NBER
• 12/31/1927-12/31/1969:  Price Return – S&P 500; Dividend Return – NYSE Dividend Yield from NBER
• 12/31/1969-12/31/2009:  S&P 500 Total Return (Retrieved from Bloomberg)

ⁱⁱ“Worst decade since at least the Civil War” is based on the data in footnote #1 and using data from the NBER on a “U.S. index of all common stock prices” for returns from 1871-1900

ⁱⁱⁱUnemployment peak during depression from NBER

^ivReal per capita GDP growth for 2000’s come from BEA using 9/30/2009 data since 12/31/2009 has not been released

^vReal per capita GDP growth for 1930’s is based on data from measuringworth.org

^viIn March 2009, the seasonally-adjusted, year over year change in the Consumer Price Index (as measured by the Bureau of Labor Statistics) was negative for the first time since August 1955

^viiSource:  International Monetary Fund

^viiiIndices Used for Stock Market Returns:

• Brazil – MSCI Brazil Local Currency Total Return
• Russia – MSCI Russia Local Currency Total Return
• India – MSCI India Local Currency Total Return
• China – MSCI China Local Currency Total Return
• U.S. – S&P 500 Total Return
• Developed World – MSCI Gross Total Return World Local Currency

^ixAll returns from Bloomberg and represent total return from 12/31/1999-12/31/2009 with dividend reinvestment
Index sources for winners & losers table:

• Precious Metals – S&P GSCI Precious Metals Total Return
• Real Estate – FTSE/NAREIT Equity REIT Total Return
• Emerging Markets – MSCI Emerging Markets Net Total Return
• U.S. Stocks – S&P 500 Total Return
• International Stocks – MSCI EAFE Net Total Return
• Cash – Merrill Lynch 3-Month T-Bill
• Venezuela – Venezuela Stock Market
• Peru – MSCI Peru Local Currency Total Return
• Egypt – MSCI Egypt Local Currency Total Return
• Iceland – OMX Iceland All-Share Index
• Finland – MSCI Finland Local Currency Total Return
• Greece – MSCI Greece Local Currency Total Return
• “Equity Sectors” represents best and worst total returns of S&P’s 10 sectors within the S&P 500
• TIPS – Barclays U.S. Inflation-Linked Bonds Total Return
• High Yield – Barclays U.S. Corporate High Yield Total Return
• Corporates – Barclays U.S. Aggregate Corporate Total Return
• Convertibles – Merrill Lynch All Convertibles, Exclude Mandatory, All Qualities
• Preferred Stock – Merrill Lynch U.S. Preferred Stock, Fixed Rate
• Asset-Backed Securities – Barclays U.S. Aggregate ABS Total Return
• “Commodities” represents best and worst total returns of the S&P GSCI official close indices
•  “Stocks (all-cap)” represents best and worst total returns of stocks in the Russell 3000 as of 12/31/2009
• “Stocks (large-cap)” represents best and worst total returns of stocks in the S&P 100 as of 12/31/2009
• “Stocks (mega-cap)” represents best and worst total returns of stocks in the Dow Jones Industrial Average as of 12/31/2009