- The document discusses historical data on bear markets, corrections, and business cycles since the late 19th century. It finds that on average, corrections occur every 2.9 years with a 12.3% loss, while bear markets occur every 5.1 years with a 36.3% average loss. - It also examines stock market performance around recessions and recoveries, finding that stocks typically bottom 1-7 months before the economy and that recoveries are "front loaded" in the first year after a recession low. - The document advocates diversification and asset allocation as ways to reduce risk and increase returns, citing data showing portfolios with a mix of stocks and bonds experienced higher returns and lower volatility than 100

1. Market Perspective Duane E. Lee, II "The average long-term experience in investing is never surprising, but the short-term experience is always surprising."

10. Generic “V” Shape of a Typical Bear Market Source: For illustrative purposes only. Not drawn to scale. Not to be interpreted as a forecast.

11. The Hardest Hit Bounce the Highest Source: Global Financial Data, S&P 500 industry returns

12. S&P 500 Performance Around Recessions -51%

13. S&P 500 Performance Pattern Around Recessions Source: Ned Davis Research, Inc.

14. S&P 500 Performance Following Recession Lows Source: Ned Davis Research, Inc.

15. Ibbotson ® SBBI ® Stocks, Bonds, Bills, and Inflation 1926–2007 0.10 1 10 100 $10,000 1,000 1926 1946 1966 1986 1936 1956 1976 1996 2006 $15,091 $3,246 $79 $20 $12 Compound annual return • Small stocks 12.5 % • Large stocks • Government bonds • Treasury bills • Inflation 10.4 5.5 3.7 3.0

16. Equities have been the best defense against taxes and inflation

18. -3%

19. Recoveries are front loaded

20. Progress Toward Goal More Important Than Short-Term Performance