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35
20 years
30
25
10 year rolling
20
15
A long time horizon can put volatility into perspective. Since 1950, a 50/50 balanced
10
5
0
-5
5 year rolling
1 year
portfolio (divided equally in U.S. stock and bond indexes) has declined as much
year20-year
as 15% over a 1-year period, while returns over rolling 5-year, 10-year 1and
-10
Annual avg.
total return
Growth of $100,000
over 20 years
8.9%
$554,632
50/50
portfolio
33%
30%
21%
25%
16%
20%
14%
15%
10%
5%
1%
2%
5%
0%
-5%
-10%
-15%
-15%
1-Year
5-Year Rolling
10-Year Rolling
20-Year Rolling
Source: Barclays Capital, FactSet, Federal Reserve, Robert Shiller, Strategies/Ibbotson, J.P. Morgan Asset Management.
Returns shown are based on calendar year returns from 1950 to 2015. Stocks represent the S&P 500 and bonds represent Strategies/
Ibbotson for periods from 1950 to 1980 and Barclays Aggregate after index inception in 1980. Growth of $100,000 is based on annual
average total returns from 1950 to 2015.
Annual return
Largest annual
market drop from
peak to trough
40% 34
30%
20%
31
20
27
26
20
10%
0%
-10%
-3
-20%
30
23
14
3
13
13
4
0
-8
-11
-19
-30%
-8 -10
-16
-23
-30
-40
-14
-8 -7
-10
-19
11
-6 -7
-1
-12
-28
-34
-38
-50
-49
-60
95
00
05
10
15
Returns shown are based on price index only and do not include dividends. Intra-year drops refers to the largest market drops from a
peak to a trough during the year. For illustrative purposes only. Returns shown are calendar year returns from 1995 to 2015.
20000
10000
Fully invested
$65,453
(9.9% return)
$60,000
$50,000
$32,665
$40,000
(6.1% return)
$30,000
$20,354
(3.6% return)
$20,000
$10,000
$0
$13,446
(1.5% return)
Fully
invested
$9,140
(-0.5% return)
$6,392
(-2.2% return)
$4,570
(-3.8% return)
This chart is for illustrative purposes only and does not represent the performance of any investment or group of investments.
4
Source: Prepared by J.P. Morgan Asset Management using data from Lipper. Twenty-year annualized returns are based on the S&P 500 Total Return
Index, an unmanaged capitalization weighted index that measures the performance of 500 large capitalization domestic stocks representing all major
industries. Past performance is not indicative of future returns. An individual cannot invest directly in an index. Data as of December 31, 2014.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
Diversification does not ensure a profit or protect against loss.
The opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends,
which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness.
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described herein
may not be suitable for all investors. This material has been prepared for informational purposes only and is not intended to provide, and should not
be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may
achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as recommendations.
Past market performance is no guarantee of future market performance.
Securities and investment advisory services are offered through J.P. Morgan Securities LLC (JPMS). JPMS, a member of FINRA and SIPC, is an affiliate of
JPMorgan Chase Bank, N.A.
INVESTMENT PRODUCTS: NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
2016 JPMorgan Chase & Co. All rights reserved. SPRING 2016