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The management of Tri-Continental viewed the beginning of the seventies as an opportunity to strengthen the portfolio's investment holdings.
 
Through 1972, the economy recovered slowly, and the DJIA closed the year at a record 1020. It was clear that economic and social problems still existed, but Tri-Continental's management was optimistic that the stocks of companies that would improve earnings as business conditions improved would produce favorable results.
 
Unfortunately, in 1973, numerous events, including the collapse of the world's monetary system and a four-fold increase in the price of oil, sent the economy into the deepest recession since the Great Depression. The prices of common stocks also suffered sharp declines. The equity market's problems worsened in 1974 as rising unemployment, double-digit inflation, and the political crisis surrounding Watergate left policy makers befuddled. Between January 1973 and September 1974, the market fell 42.6% — its worst performance since the 1930s. The Corporation concentrated on ensuring that the securities in the portfolio were those of strong companies that represented reasonable risks. Less promising holdings were reduced or eliminated.
 
The investment decisions that were made in the first half of the decade were rewarded in the second half, which was a period of improving economic conditions, more optimistic investor sentiment, rising corporate profits, and a stronger equity market. However, as the decade drew to a close, and Tri-Continental entered its 50th year, evidence of another recession developed and inflation accelerated. Interest rates rose to new highs, with the prime rate charged by banks soaring to more than 20%.