10 YEAR ROLLING U.S. COMMON STOCK RETURNS (as of 12/31/2008)
Source: Hays Advisory, LLC, www.haysadvisory.com; 1825 to 1925: A New Historical Database for the NYSE 1815 to 1925: Performance and Predictability by William N. Goetzmann, Roger G. Ibbotson and Liang Peng, Yale School of Management; 1926 to present: Ibbotson or S&P 500 and Heartland Advisors, Inc. All data is as of 12/31, unless noted.
Rolling returns don’t lie: they show investors an intimate picture of what happened over any given period. In the chart above, Hays Advisory examined 10-year rolling returns since 1832. Because no markets offer a crystal ball, we marry history with experience in an attempt to build client wealth. We believe this chart demonstrates the emotional rollercoaster as it navigates between the fear and greed of investors. However, from the trenches, reality has rewarded. If you bought at the four down markets since 1832, the next ten years rewarded you with approximately 14.5%. In other words, the ‘buy low, sell high’ opportunity seems to be clearly upon us.
Offering diversified, value equity portfolios is our forté here at Heartland. And, for a quarter of a century, Heartland’s team has been executing a formidable value strategy. History plus experience, we believe, will offer tremendous capital appreciation as this trend reverses course. It seems to have already started; from March 9th through May 5th, 2009:
Russell 2000 Value Index: + 50%
Russell 2000 Index: + 47%
S&P 500 Index: + 34%
Past performance does not guarantee future results. Value-based investments may be subject to the risk that the broad market may not recognize their intrinsic worth. An investment in the Funds involves risks, including loss of principal.
Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. All indices are unmanaged. It is not possible to invest directly in an index.
Russell 2000 Index includes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations. All indices are unmanaged. It is not possible to invest directly in an index.
S&P 500 Index is an index of 500 U.S. stocks chosen for market size, liquidity and industry group representation and is a widely used U.S. equity benchmark. All indices are unmanaged. It is not possible to invest directly in an index.