Login   Home  | About GetAlts  |  Contact Us  |  Site Map   

Dow Jones Historical Trends

Since its inception, the stock market has rewarded investors with long-term growth. But for most investors, a realistic time horizon is 10 to 20 years-not more than a century.

History shows that the equity market enters long periods of high returns, followed by lengthy periods of lower ones. These periods are called secular trends. There are two kinds of secular trends:

  • Secular Bull Market, or upward-trending market, occurs when each successive high point is higher than the previous one.
  • Secular Bear Market, or downward-trending market, occurs when a trend does not rise above the previous high.

Having a thorough understanding of market trends and the current market environment, may help you better prepare for upcoming financial goals.

To see the market in action, track the Dow Jones Industrial Average's performance below since 1896.

Logarithmic graph of the Dow Jones Industrial Average from 12/1896 through 12/2010. Source: Graph created by Rydex SGI using data from www.dowjones.com 1/2011.

Performance displayed represents past performance, which is no guarantee of future results. The Dow Jones Industrial Average is unmanaged an unavailable for direct investment. Returns do not relfect any dividends, management fees, transaction costs or expenses. Contact your financial advisor to discuss this concept further.

 

but_previousbut_continue


The alternatives strategies and asset classes mentioned are not suitable for all investors. Many alternative strategies use sophisticated and aggressive investment techniques such as leveraging, short selling and derivatives. The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, -such as droughts, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment. For more information about these strategies and their risks please consult your financial advisor.

This material is not intended to be a comprehensive overview of the subject matters discussed. It is intended to be general in nature and should not be construed as investment advice or a recommendation of any specific security or strategy. Before investing in any of the investment products or strategies discussed, consult with your financial advisor to determine if they are appropriate for your objectives, risk tolerance, income level and investing time horizon.

Rydex SGI offers funds with investment strategies similar to those referenced on GetAlts.com.

Read the fund's prospectus and summary prospectus (if available) carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors® and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

©2012 Rydex SGI. All rights reserved.