IMPACTThe decision to stay invested during market turmoil is often better than timing
when to sell and buy.
The choices as of September 30, 2008 are:Staying the course during market volatility is often
difficult for many investors. Some choose to move tocash investments, while others try to time the market.
Unfortunately, these investors are often buying highand selling low—and miss the rallies that follow thechallenging periods.

OPTION #1: Stay invested, and make no changes.
OPTION #2: Move to 100% cash, represented by theBloomberg 1–3 Month U.S. Treasury Bill Index, andremain in cash.

So, does staying the course pay off?
In the following chart, we look at a hypothetical portfolioof 60% stocks and 40% bonds faced with threealternatives as of September 30, 2008 (two weeks after
the collapse of Lehman Brothers). The starting point for
the $100,000 hypothetical portfolio is October 9, 2007,
the prior market peak.
'08 Lehman Brothers collapse'09 U.S. Automotive bailout'10 Flash crash'11 U.S. credit rating downgrade'12 ECB to do "whatever it takes
to preserve Euro”'13 U.S. sequester-triggered
spending cuts and tax increases
September 30, 2008

250,000

Hypothetical Portfolio Value ($)

200,000

OPTION #3: Move to 100% treasuries, represented by
the Bloomberg US Treasury Index, on September 30,
2008, and remain in treasuries.
As the chart shows, when sticking with a 60/40 portfolio,
investors recovered a greater percentage of their lostvalue—and at a faster rate—than going to cash ortreasuries.

'14 U.S. Federal Reserve reduces size of monthly asset purchase program'15 Greece & Chinese market crash'16 UK votes to leave the European Union'18 Wage/inflation fears sparks market volatility'20 Coronavirus categorized as a pandemic

Three options:60/40 stay the course
Move to 100% cash
Move to 100% government bonds

150,000

100,000

50,0000

Hypothetical cumulative returns Oct. 08–Dec. 23
U.S. equity
440%
Non-U.S. equity
107%
U.S. bonds
55%
Treasuries
37%
Cash
14%

GREAT RECESSION

2007

2008

2009

2010

60/40 Balanced

2011

2012

2013

2014

Cash after Sept. 2008

2015

Hypothetical portfolio values on December 31, 2023
60/40 balanced portfolio:$243,667

Cash portfolio:$99,837

Treasury portfolio:$120,522

2016

2017

2018

2019

2020

2021

2022

2023

Treasuries after Sept 2008

60/40: 40% Russell 3000® Index (U.S. equity), 20% MSCI ACWI ex USA Index (non-U.S. equity), 40% Bloomberg Barclays U.S. Aggregate BondIndex (U.S. bonds); Cash: Bloomberg US Treasury Bill 1-3 M TR USD (cash); Treasuries: Bloomberg US Treasury TR USD (1972). This hypotheticalexample is for illustration only and is not intended to reflect the return of any actual investment. The 60/40 Balanced Index portfolio does not reflecta deduction for expenses or fees, had it done so, returns would have been lower. Index returns represent past performance and are not a guaranteeof future performance.

Not a Deposit. Not FDIC Insured. May Lose Value. Not Bank
Guaranteed. Not Insured by any Federal Government Agency.

russellinvestments.com

IMPORTANT RISK DISCLOSURES
Please remember that all investments carry some level of risk, including
the potential loss of principal invested. They do not typically grow at aneven rate of return and may experience negative growth. As with anytype of portfolio structuring, attempting to reduce risk and increase
return could, at certain times, unintentionally reduce returns. No
investment strategy can guarantee a profit or protect against a loss.

Fund objectives, risks, charges, and expenses should
be carefully considered before investing. A summary
prospectus, if available, or a prospectus containing thisand other important information can be obtained bycalling 800-787-7354 or by visiting Russell Investments
online. Please read the prospectus carefully before
investing.
These views are subject to change at any time based upon market orother conditions and are current as of the date at the top of the page.
The information, analysis, and opinions expressed herein are for general
information only. Nothing contained in these materials is intended toconstitute legal, tax, securities, or investment advice, nor an opinion
regarding the appropriateness of any investment, nor a solicitation ofany type. The general information contained in this publication should
not be acted upon without obtaining specific legal, tax, and investment
advice from a licensed professional.
The Russell 3000® Index measures the performance of the largest 3,000
U.S. companies representing approximately 98% of the investable U.S.
equity market.
The MSCI ACWI ex USA Index captures large- and mid-cap
representation across 22 of 23 Developed Markets countries (excludingthe U.S.) and 24 Emerging Markets countries.
Bloomberg Barclays U.S. Aggregate Bond Index is an index, withincome reinvested, generally representative of intermediate-term
government bonds, investment-grade corporate debt securities, andmortgage-backed securities.

Bloomberg US Treasury Bill 1-3 M TR USD index measures theperformance of public obligations of the U.S. Treasury that have aremaining maturity of greater than or equal to 1 month and less than 3months.
Bloomberg US Treasury TR USD (1972) index is an index composed of
all U.S. Treasury publicly issued obligations. Includes only notes andbonds with a minimum outstanding principal amount of $50 million anda minimum maturity of one year.
Indexes are unmanaged and cannot be invested in directly. Data ishistorical and is not indicative of future results.
Russell Investments’ ownership is composed of a majority stake held
by funds managed by TA Associates Management, L.P., with significant
minority stakes held by funds managed by Reverence Capital Partners,
L.P. Certain of Russell Investments’ employees and Hamilton Lane
Advisors, LLC also hold minority, non-controlling, ownership stakes.
Frank Russell Company is the owner of the Russell trademarks
contained in this material and all trademark rights related to the Russell
trademarks, which the members of the Russell Investments groupof companies are permitted to use under license from Frank Russell
Company. The members of the Russell Investments group of companies
are not affiliated in any manner with Frank Russell Company or anyentity operating under the “FTSE RUSSELL” brand.
Russell Investments Financial Services, LLC, member FINRA, part ofRussell Investments.
Copyright © 2024 Russell Investments Group, LLC. All rights reserved.
This material is proprietary and may not be reproduced, transferred, ordistributed in any form without prior written permission from Russell
Investments. It is delivered on an "as is" Basis without warranty.
First used: March 2017. Updated: January 2024.
RIFIS-25810 [Exp 03/25]

russellinvestments.com