Privacy Policy		Six Reasons To Get Back Into The Market 1. We're probably closer to the bottom than the top Where do you think we are on the market clock? While no one can predict the market's bottom, it does seem likely we are closer to 6 than 12 o'clock, making this the time when stock values are more attractive. 2. Historically, it has been best to get in early Historically, the benefits of getting into a bull market early — or remaining invested — have been profound. Average equity returns in a bull market* 1st half vs. 2nd half Based on the Dow Jones Industrial Average (1/2/29–6/28/02)† Average duration of bull markets = 2.05 yrs. * Source: Ned Davis Research, July 2002. Bull markets are based on NDR-defined criteria. † DJIA is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials. You cannot invest directly in the DJIA. Illustration is price only and assumes no transaction costs. 3. What's "safe" short-term may be disappointing long-term So-called "safe" short-term investments, such as money market funds, offer protection and liquidity during volatile markets, but can generate disappointing long-term returns. Cash has beaten stocks and bonds in only 12 of the past 77 years, according to Ibbotson Associates. $1.00 invested from 1926 through 12/31/02 grew to $17.48 if invested in cash (T-bills), but $1,775.00 if invested in stocks (the S&P 500). Unlike fund shares, T-bills offer a guaranteed return of principal and interest if held to maturity. 4. Rebounds take time to start All past bear markets have eventually rebounded. The current bear market has already lasted well past the average bear market length of 1.1 years1. Market declines through recent history2 Market high Market low Duration (months) % change 5/29/46 6/13/49 36 -29.6 8/2/56 10/22/57 15 -21.6 11/29/68 5/26/70 18 -36.1 1/11/73 10/3/74 21 -48.2 9/21/76 3/6/78 18 -19.4 11/28/80 8/12/82 21 -27.1 3/24/00 10/9/02 31 -49.1 1 Source: Ned Davis Research, November 2002. 2 Market declines of 15% or more lasting more than one year over the past 60 years as measured by Standard & Poor's 500 Composite Index (the S&P 500), an unmanaged measure of stocks of large U.S. companies. Chart does not reflect sales charges, commissions or expenses. Dividends taken in cash. 5. Excesses must be corrected History has shown that bear markets largely occur in reaction to the excesses of the previous bull market. Nearly three years after the Internet bubble burst, consider how we have corrected the bubble's problems so far: Most Internet and technology companies without a sustainable business model no longer exist. Companies with bad business practices have been exposed, which will likely result in improved accounting standards for all. 6 . Use a balanced approach to investing While no one can tell where the market will go from here you can take steps to reduce volatility. Avoid excess investment in one "hot" category. Rather, design a portfolio that takes advantage of investment in multiple asset classes for diversification. Critically, you should seek professional assistance to analyze your risk/reward profile before beginning the task of selecting investments to suit your personal goals. Your Credit Union financial representative can help. Give him a call to arrange an appointment now. Be pro-active in securing your financial future. Securities offered through Cadaret Grant & Co., Inc. Member NASD/SIPC, PPG and CG are separate entities. Securities and/or insurance products not insured by FDIC/NCUA or any government agency. May lose value. Not a deposit of or guaranteed by any bank, credit union or any affiliates. Licensed in AZ, CA, CO, CT, GA, ID, MA, ME, NC, NH, NJ, NY, PA, VA, VT and WY.