Stocks, Bonds, Bills and Inflation

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Stocks, Bonds, Bills and Inflation Powered By Docstoc
					Ibbotson Compound Annual Total Return (%) Data: 1926-2006


                                            Long-Term        Long-Term
  Year     Large Stocks    Small Stocks   Corporate Bonds   US Govt Bonds   US T-bills   Inflation
  1926         11.62           0.28             7.37             7.77          3.27        -1.49
  1927         37.49          22.10             7.44             8.93          3.12        -2.08
  1928         43.61          39.69             2.84             0.10          3.56        -0.97
  1929         -8.42         -51.36             3.27             3.42          4.75         0.20
  1930        -24.90         -38.15             7.98             4.66          2.41        -6.03
  1931        -43.34         -49.75            -1.85            -5.31          1.07        -9.52
  1932         -8.19          -5.39            10.82            16.84          0.96       -10.30
  1933         53.99         142.87            10.38            -0.07          0.30         0.51
  1934         -1.44          24.22            13.84            10.03          0.16         2.03
  1935         47.67          40.19             9.61             4.98          0.17         2.99
  1936         33.92          64.80             6.74             7.52          0.18         1.21
  1937        -35.03         -58.01             2.75             0.23          0.31         3.10
  1938         31.12          32.80             6.13             5.53         -0.02        -2.78
  1939         -0.41           0.35             3.97             5.94          0.02        -0.48
  1940         -9.78          -5.16             3.39             6.09          0.00         0.96
  1941        -11.59          -9.00             2.73             0.93          0.06         9.72
  1942         20.34          44.51             2.60             3.22          0.27         9.29
  1943         25.90          88.37             2.83             2.08          0.35         3.16
  1944         19.75          53.72             4.73             2.81          0.33         2.11
  1945         36.44          73.61             4.08            10.73          0.33         2.25
  1946         -8.07         -11.63             1.72            -0.10          0.35        18.16
  1947          5.71           0.92            -2.34            -2.62          0.50         9.01
  1948          5.50          -2.11             4.14             3.40          0.81         2.71
  1949         18.79          19.75             3.31             6.45          1.10        -1.80
  1950         31.71          38.75             2.12             0.06          1.20         5.79
  1951         24.02           7.80            -2.69            -3.93          1.49         5.87
  1952         18.37           3.03             3.52             1.16          1.66         0.88
  1953         -0.99          -6.49             3.41             3.64          1.82         0.62
  1954         52.62          60.58             5.39             7.19          0.86        -0.50
  1955         31.56          20.44             0.48            -1.29          1.57         0.37
  1956          6.56           4.28            -6.81            -5.59          2.46         2.86
  1957        -10.78         -14.57             8.71             7.46          3.14         3.02
  1958         43.36          64.89            -2.22            -6.09          1.54         1.76
  1959         11.96          16.40            -0.97            -2.26          2.95         1.50
  1960          0.47          -3.29             9.07            13.78          2.66         1.48
  1961         26.89          32.09             4.82             0.97          2.13         0.67
  1962         -8.73         -11.90             7.95             6.89          2.73         1.22
  1963         22.80          23.57             2.19             1.21          3.12         1.65
  1964         16.48          23.52             4.77             3.51          3.54         1.19
  1965         12.45          41.75            -0.46             0.71          3.93         1.92
  1966        -10.06          -7.01             0.20             3.65          4.76         3.35
  1967         23.98          83.57            -4.95            -9.18          4.21         3.04
  1968         11.06          35.97             2.57            -0.26          5.21         4.72
  1969         -8.50         -25.05            -8.09            -5.07          6.58         6.11
  1970          4.01         -17.43            18.37            12.11          6.52         5.49
  1971         14.31          16.50            11.01            13.23          4.39         3.36
  1972         18.98           4.43             7.26             5.69          3.84         3.41
  1973        -14.66         -30.90             1.14            -1.11          6.93         8.80
  1974        -26.47         -19.95            -3.06             4.35          8.00        12.20
  1975         37.20          52.82            14.64             9.20          5.80         7.01
  1976         23.84          57.38            18.65            16.75          5.08         4.81
  1977         -7.18          25.38             1.71            -0.69          5.12         6.77
  1978          6.56          23.46            -0.07            -1.18          7.18         9.03
Ibbotson Compound Annual Total Return (%) Data: 1926-2006


                                                     Long-Term           Long-Term
   Year        Large Stocks      Small Stocks      Corporate Bonds      US Govt Bonds   US T-bills   Inflation
   1979            18.44            43.46               -4.18               -1.23         10.38        13.31
   1980            32.42            39.88               -2.76               -3.95         11.24        12.40
   1981            -4.91            13.88               -1.24                1.86         14.71         8.94
   1982            21.41            28.01               42.56               40.36         10.54         3.87
   1983            22.51            39.67                6.26                0.65          8.80         3.80
   1984             6.27            -6.67               16.86               15.48          9.85         3.95
   1985            32.16            24.66               30.09               30.97          7.72         3.77
   1986            18.47             6.85               19.85               24.53          6.16         1.13
   1987             5.23            -9.30               -0.27               -2.71          5.47         4.41
   1988            16.81            22.87               10.70                9.67          6.35         4.42
   1989            31.49            10.18               16.23               18.11          8.37         4.65
   1990            -3.17           -21.56                6.78                6.18          7.81         6.11
   1991            30.55            44.63               19.89               19.30          5.60         3.06
   1992             7.67            23.35                9.39                8.05          3.51         2.90
   1993             9.99            20.98               13.19               18.24          2.90         2.75
   1994             1.31             3.11               -5.76               -7.77          3.90         2.67
   1995            37.43            34.46               27.20               31.67          5.60         2.54
   1996            23.07            17.62                1.40               -0.93          5.21         3.32
   1997            33.36            22.78               12.95               15.85          5.26         1.70
   1998            28.58            -7.31               10.76               13.06          4.86         1.61
   1999            21.04            29.79               -7.45               -8.96          4.68         2.68
   2000            -9.11            -3.59               12.87               21.48          5.89         3.39
   2001           -11.89            22.77               10.65                3.70          3.83         1.55
   2002           -22.10           -13.28               16.33               17.84          1.65         2.38
   2003            28.70            60.70                5.27                1.45          1.02         1.88
   2004            10.87            18.39                8.72                8.51          1.20         3.26
   2005             4.91             5.69                5.87                7.81          2.98         3.42
   2006            15.79            18.44                4.79               -1.12          4.75         1.97


Definitions:
   Large Stocks : Standard & Poor's 500 Index
   Small Stocks: Smallest Quintile of NYSE Stocks; DFA Small Co. Fund, DFA MicroCap Fund
   LT Corporate Bonds : Salomon Brothers Long-term High-grade Index
   LT US Govt Bonds : One-bond portfolio with Maturity Near 20 years
   US T-Bills : One-bill portfolio with Shortest Maturity not less than one month
   Inflation : Consumer Price Index


Note: All return data for 2006 is preliminary and subject to revision
Ibbotson Compound Annual Total Return Data: Summary Statistics


                                    1926-2006               1957-2006         1982-2006           1997-2006
      Average Return (%):
      Large Stocks                     12.34                     11.91          14.45               10.02
      Small Stocks                     17.38                     17.24          15.73               15.44
      LT Corporate Bonds                6.22                      7.60          11.81                8.08
      LT US Govt Bonds                  5.76                      7.24          11.66                7.96
      US T-Bills                        3.77                      5.39           5.36                3.61
      Inflation                         3.11                      4.09           3.09                2.38

      Std Deviation (%):
      Large Stocks                     20.08                     16.69          15.54               19.14
      Small Stocks                     32.74                     25.15          19.47               21.55
      LT Corporate Bonds                8.46                     10.04          10.90                6.61
      LT US Govt Bonds                  9.22                     10.86          12.53                9.42
      US T-Bills                        3.10                      2.79           2.52                1.79
      Inflation                         4.26                      2.97           1.16                0.75


      Correlations: 1926-2006       Large Stocks           Small Stocks   LT Corporate Bonds   LT US Govt Bonds   US T-Bills
      Large Stocks                        ---
      Small Stocks                       0.79                      ---
      LT Corporate Bonds                 0.19                     0.08            ---
      LT US Govt Bonds                   0.12                    -0.02           0.93                 ---
      US T-Bills                        -0.02                    -0.10           0.20                0.22            ---

      Correlations: 1957-2006       Large Stocks           Small Stocks   LT Corporate Bonds   LT US Govt Bonds   US T-Bills
      Large Stocks                       ---
      Small Stocks                      0.71                       ---
      LT Corporate Bonds                0.25                      0.01            ---
      LT US Govt Bonds                  0.15                     -0.11           0.95                 ---
      US T-Bills                        0.00                     -0.08           0.11                0.15            ---

      Correlations: 1982-2006       Large Stocks           Small Stocks   LT Corporate Bonds   LT US Govt Bonds   US T-Bills
      Large Stocks                       ---
      Small Stocks                      0.60                       ---
      LT Corporate Bonds                0.26                      0.14            ---
      LT US Govt Bonds                  0.24                      0.04           0.96                 ---
      US T-Bills                        0.27                     -0.12           0.46                0.39            ---

      Correlations: 1997-2006       Large Stocks           Small Stocks   LT Corporate Bonds   LT US Govt Bonds   US T-Bills
      Large Stocks                        ---
      Small Stocks                       0.52                      ---
      LT Corporate Bonds                -0.42                    -0.52            ---
      LT US Govt Bonds                  -0.35                    -0.65           0.89                 ---
      US T-Bills                         0.15                    -0.29          -0.06                0.11            ---
Compounded Dollar Investment for Stocks, Bonds, and Cash: 1977-2006


                                       Asset Classes                                                    Portfolios
                       Stock                Bond                 Cash           Mix (60-30-10)            Max                     Min
   Year        Returns Cmpd $       Returns Cmpd $       Returns Cmpd $      Returns Cmpd $       Returns Cmpd $        Returns     Cmpd $
   1977          -7.18       0.93      1.71       1.02      5.12      1.05     -3.28       0.97      5.12        1.05     -7.18       0.93
   1978           6.56       0.99     -0.07       1.02      7.18      1.13      4.63       1.01      7.18        1.13     -0.07       0.93
   1979          18.44       1.17     -4.18       0.97     10.38      1.24     10.85       1.12     18.44        1.33     -4.18       0.89
   1980          32.42       1.55     -2.76       0.95     11.24      1.38     19.75       1.34     32.42        1.77     -2.76       0.86
   1981          -4.91       1.48     -1.24       0.94     14.71      1.59     -1.85       1.32     14.71        2.03     -4.91       0.82
   1982          21.41       1.79     42.56       1.33     10.54      1.75     26.67       1.67     42.56        2.89     10.54       0.91
   1983          22.51       2.19      6.26       1.42      8.80      1.91     16.26       1.94     22.51        3.54      6.26       0.97
   1984           6.27       2.33     16.86       1.66      9.85      2.10      9.81       2.13     16.86        4.14      6.27       1.03
   1985          32.16       3.08     30.09       2.15      7.72      2.26     29.10       2.75     32.16        5.47      7.72       1.11
   1986          18.47       3.65     19.85       2.58      6.16      2.40     17.65       3.24     19.85        6.55      6.16       1.17
   1987           5.23       3.84     -0.27       2.57      5.47      2.53      3.60       3.36      5.47        6.91     -0.27       1.17
   1988          16.81       4.49     10.70       2.85      6.35      2.69     13.93       3.82     16.81        8.07      6.35       1.24
   1989          31.49       5.90     16.23       3.31      8.37      2.91     24.60       4.76     31.49       10.62      8.37       1.35
   1990          -3.17       5.71      6.78       3.54      7.81      3.14      0.91       4.81      7.81       11.44     -3.17       1.31
   1991          30.55       7.46     19.89       4.24      5.60      3.32     24.86       6.00     30.55       14.94      5.60       1.38
   1992           7.67       8.03      9.39       4.64      3.51      3.43      7.77       6.47      9.39       16.34      3.51       1.43
   1993           9.99       8.83     13.19       5.25      2.90      3.53     10.24       7.13     13.19       18.50      2.90       1.47
   1994           1.31       8.95     -5.76       4.95      3.90      3.67     -0.55       7.09      3.90       19.22     -5.76       1.38
   1995          37.43      12.30     27.20       6.29      5.60      3.88     31.18       9.30     37.43       26.41      5.60       1.46
   1996          23.07      15.14      1.40       6.38      5.21      4.08     14.78      10.68     23.07       32.51      1.40       1.48
   1997          33.36      20.18     12.95       7.21      5.26      4.29     24.43      13.28     33.36       43.35      5.26       1.56
   1998          28.58      25.95     10.76       7.98      4.86      4.50     20.86      16.05     28.58       55.74      4.86       1.64
   1999          21.04      31.41     -7.45       7.39      4.68      4.71     10.86      17.80     21.04       67.47     -7.45       1.51
   2000          -9.11      28.55     12.87       8.34      5.89      4.99     -1.02      17.62     12.87       76.16     -9.11       1.38
   2001         -11.89      25.16     10.65       9.23      3.83      5.18     -3.56      16.99     10.65       84.27    -11.89       1.21
   2002         -22.10      19.60     16.33      10.74      1.65      5.27     -8.20      15.60     16.33       98.03    -22.10       0.94
   2003          28.70      25.22      5.27      11.30      1.02      5.32     18.90      18.55     28.70      126.16      1.02       0.95
   2004          10.87      27.96      8.72      12.29      1.20      5.39      9.26      20.26     10.87      139.88      1.20       0.97
   2005           4.91      29.34      5.87      13.01      2.98      5.55      5.01      21.28      5.87      148.09      2.98       0.99
   2006          15.79      33.97      4.79      13.63      4.75      5.81     11.39      23.70     15.79      171.47      4.75       1.04

Average:         13.56                 9.62                6.08                11.63                19.17                 0.40
Std. Dev.:       15.55                11.13                3.15                10.72                10.75                 7.13
Mod. Sharpe:     0.480                0.318                nm                  0.517                1.217                -0.797

				
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