YEARS

E E E E E E E E E E E R R R R R R R R R R R
%

C
h
a
n
g
e

i
n

S
&
P

5
0
0

I
n
d
e
x
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
F
e
d
e
r
a
l
f
u
n
d
s

r
a
t
e
-50%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
550%
600%
-100%
12/31/11 49 50 51 52 53 54 55 5 51 58 59 0 1 2 3 4 5 1 8 9 10 11 12 13 14 15 1 11 18 19 80 81 82 83 84 85 8 81 88 89 90 91 92 93 94 95 9 91 98 99 00 01 02 03 04 05 0 01 08 09 10 11
Federal funds rate
The interest rate at which
private banks lend money
for overnight loans. The
Fed generally raises the
target federal funds rate
to slow economic growth,
and lowers the rate to
facilitate growth.
0
2
4
6
8
10
12
14
16
18
20
22
24
To Make art out of the chart:
1. Once data is updated, Use the Direct selection tool (open arrow) and click anywhere within the area chart.
2. Copy and paste the selection
3. In Pathnder palette, choose Divide. This changes the chart into individual pieces of art.
4. Ungroup art
5. Select all positive areas of chart and color 65c100y (Make sure you zoom in to see all of the positive areas)
6. Choose all negative areas of chart and color 94m80y (Make sure you zoom in to see all of the negative areas)
7. Then copy and paste the chart graphic you just modied into the composite chart featured in the job
8. Resize the graphics to match existing area chart
9. Be sure current quarter is represented properly.
If Q1 data should only take up 1/4 of current year, if Q2 data takes up 1/2, etc.
-100
0
100
200
300
400
500
600
-15%
5
months
-24%
4
months
-17%
20
months
-14%
14
months
-43%
21
months
-29%
19
months
-16%
8
months
-22%
6
months
-8%
15
months
-14%
17
months
33
months
87%
19
months
60%
14
months
39%
43
months
90%
118
months
526%
29
months
59%
61
months
281%
27
months
86%
30
months
76%
26
months
52%
91
months
407%
56
months
100%
-43%
30
months
-51%
16
months
-6%
8
months
Percent change of the
S&P 500 Index for each bull
and bear market since 1949
26
months
94%
Sources: National Bureau of Economic Research, Ibbotson Associates, The Federal Reserve Bank of St. Louis, Putnam Investments, 2011. Data is as of 12/31/11, is historical, and refects reinvested dividends. Past
performance and market conditions do not guarantee future results and may not be duplicated. The S&P 500 Index is an unmanaged index of common stock performance. It is not possible to invest directly in an
index. Federal funds rate data was not available before July 1954. A bull market is here defned as a period when the stock market rises for at least four straight months. A bear market is defned as a market decline
of at least four months.
Stay invested.
For long-term investors, staying invested makes more sense
than moving in and out of the market at the frst sign of bad
news. Over the past 63 years, bull markets Bull Market
Bear Market
Federal Funds rate
Economic expansion
Economic contraction
30-year mortgage rate
E
R
have lasted
longer (44 months on average) than bear markets
Bull Market
Bear Market
Federal Funds rate
Economic expansion
Economic contraction
30-year mortgage rate
E
R

(13 months on average) and have more than made up for the
periodic market declines. Bull markets have begun during
economic recessions
Bull Market
Bear Market
Federal Funds rate
Economic expansion
Economic contraction
30-year mortgage rate
E
R
and expansions Bull Market
Bear Market
Federal Funds rate
Economic expansion
Economic contraction
30-year mortgage rate
E
R
and at all
levels of rates
Bull Market
Bear Market
Federal Funds rate
Economic expansion
Economic contraction
30-year mortgage rate
E
R
. And while it is impossible to predict
when a bull market will begin, it is possible to miss one by
waiting on the sidelines.
Investor Education
Q4 | 2011
Three reasons to stay the course.
1. The market has always recovered
Over the past 63 years, there have been 13 bear
markets, lasting an average of 14 months and
declining a total of 24.2% before recovering.
By contrast, the 13 bull markets since 1949 have
lasted roughly 44 months on balance, each
growing an average of 120.6%.

2. Frequent sellers have lagged the market
Industry researcher DALBAR has studied the
efects of frequent buying and selling by mutual
fund investors. The study found that over the
past 20 years ending December 31, 2010, stock
fund investors who held shares for an average of
just over 3 years before selling earned substantially
less than the return of the S&P 500 Index (3.8%
versus 9.1%).*
3. Market gains have more
than made up for losses
Although selling may feel better in times of market
turbulence, the fact is that market gains have more
than made up for losses for those investors who
stay invested over time. A $10,000 investment in
the S&P 500 Index in 1991 would have grown to
$45,012 by December 31, 2011, despite the 51%
downturn of 20082009. Please keep in mind
that returns for other periods may have been less
favorable and that other market segments may not
have recovered from this downturn.
* Source: DALBAR, Inc. Quantitative Analysis of Investor
Behavior, 2011, for the period ended 12/31/10.
Investors should carefully consider the investment
objectives, risks, charges, and expenses of a fund
before investing. For a prospectus, or a summary
prospectus if available, containing this and other
information for any Putnam fund or product,
call your fnancial representative or call Putnam
at 1-800-225-1581. Please read the prospectus
carefully before investing.
Putnam Retail Management
Putnam Investments | One Post Ofce Square | Boston, MA 02109 | putnam.com II6202686112/12
BULL MARKETS versus BEAR MARKETS (12/31/4812/31/11)
Bull Bear
Occurrences 13 13
% of time in economic recessions 48% 52%
% of time in economic expansions 81% 19%
Average length (months) 44 14
Average annual return 24.0% -21.0%
Average cumulative return 120.6% -24.2%
Source: Putnam research. Data illustrated using S&P 500 Index.