copyright ©2005 ibbotson associates, inc. long-term investment performance securities offered...

Copyright ©2005 Ibbotson Associates, Inc.

Long-Term Investment Performance

Securities offered through Lincoln Financial Advisors Corp., a broker/dealer,1300 S. Clinton Street, Fort Wayne, IN 46802-3506, Phone 800-454-6265.

Insurance offered through Lincoln affiliates and other fine companies.Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

CRN200510-1003365

This is for illustrative purposes only and not indicative of any investment.An investment cannot be made directly in an index.Past performance is no guarantee of future results. 3/1/2005


Long-term market performance

Stocks• Large company stocks• Small company stocks• International stocks

Bonds• Government bonds• Corporate bonds• Municipal bonds• International bonds

Cash Equivalents• Money market funds• Treasury bills• Certificates of deposit

Real assets• Real estate• Commodities• Gold



Hypothetical value of $1 invested at year-end 1925. Assumes reinvestment of income and no transaction costs or taxes.

$11

Endingwealth

3.0%

Averagereturn

Year-end 1925–2004Stocks, Bonds, Bills, and Inflation

Inflation

$18 3.7%

Treasury bills

$.10

$1

$10

$100

$1,000

$10,000$20,000

1925 1935 1945 1955 1965 1975 1985 1995 2004

5.4%$66

Government bonds

12.7%$12,968Small company stocks

10.4%$2,533Large company stocks




Year-end 1984–2004Stocks, Bonds, Bills, and Inflation

$1.82

Endingwealth

Averagereturn

3.0%

InflationTreasury bills

$2.57 4.8%

$7.80 10.8%

Government bonds

$0

$1

$10

$100

1984 1989 1994 1999 2004

$13.02 13.7%

Small company stocks

$11.99 13.2%

Large company stocks



One-year growth and value trends 1969–2004Growth versus value stocks

Data calculated using rolling 12-month returns.

An

nu

al

pre

miu

ms

Large growth

Large value

0%

10%

20%

30%

40%

1969 1974 1979 1984 1989 1994 1999 2004



Growth and value investing

Ending

wealth

Average

return

Large value

Large growth


Year-end 1927–2004

$5,642

$859

$.10

$1

$10

$100

$1,000

$10,000

$100,000

1927 1937 1947 1957 1967 1977 1987 1997

11.9%Small growth

$1,165 9.6%

9.2%

2004

Small value $43,605 14.9%



Average

return

Ending

wealth

3.7%$17.87

Bond market performanceYear-end 1925–2004


$.10

$1

$10

$100

$1,000

$10,000

1925 1935 1945 1955 1965 1975 1985

Treasury bills

1995

4.4%$29.24

Municipal bonds

Government bonds

5.4%$65.72

5.9%$94.40

Corporate bonds

2004

10.4%$2,553

Stocks



Stocks, commodities, real estate, and goldYear-end 1984–2004

Ending

wealth

Average

return

1.7%

11.8%

13.2%

7.6%

10.1%

Gold

International stocks

U.S. stocks

Real estateCommodities


$9.24

$11.99

$6.86

$4.30

$1.41

$.10

$1

$10

$100

1984 1988 1992 1996 2000 2004

copyright ©2005 ibbotson associates, inc. long-term investment performance securities offered...

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