INVESTING PRINCIPLES

Stocks for the Long Run

December 1801 – December 2024

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“Stocks are the most volatile asset class in the short run, but the most stable in the long run.”
— Professor Jeremy Siegel

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NOTE: Values are indexed to 1, log scale. Past performance is not a reliable indicator of current or future results. Indexes are unmanaged and not

subject to fees. It is not possible to invest directly in an index. Source: Siegel, Jeremy, Stocks for the Long Run (2022), 6th edition with updates to 2025.

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Invest wisely

• Consider your needs. While diversification matters for any investor, your best proportion of stocks, bonds, and other assets depends on your goals, risk tolerance, and stage of life.
• Diversify within asset classes. Not all stocks and bonds are alike. A combination of large- and small-cap stocks, and bonds of varying duration, risk, and yield offers further diversification.
• Rebalance regularly. Left alone, a diversified portfolio can become imbalanced as individual assets fluctuate. Periodic rebalancing helps you maintain the best portfolio for your goals.
• Invest for the long term. The benefits of diversification rise the longer you stay invested. That’s good reason to stick to your strategy and avoid rash decisions in the heat of the moment.

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