I design Balanced portfolios for 401k plans to demonstrate that over 5yr periods all plans with SEC 11-k reports that I have scanned have a portfolio with a positive 5yr return. That even includes plans for companies in Chapter 11 bankruptcy like General Growth Properties whose stock GGP still trades every day. A bankruptcy court recently approved their disclosure statement and they expect to emerge from Chapter 11 bankruptcy in October. I own no GGP stock and have no interest in the company. The Balanced portfolio for their 401k plan has the stable value fund VRST in the scan and the money market fund VMMXX as its 2 largest holdings with small amounts in 7 other investment options. As you can see in the 2D scan chart the company stock has been extremely volatile and the employee portfolio with 9.8% invested in the stock has "off-the-chart" volatility. I had to change the font on the STD axis to display the employee portfolio which has a small positive return. This company stock was up 810.85% in 2009 but the 5yr compound annual return was a negative APR = -4.78%. Volatility kills compounding.
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