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Get Ready For Your Grandparents' Bond Market

davfordavfor
edited July 2015 in Off-Topic
This article suggests there are reasons to be optimistic regarding the future of the real economy. Here are a couple of excerpts:

"The U.S. faces a period of slow growth, low rates and low inflation—meaning the fixed income market will begin to look a lot like it did in the 1950s, when the nominal returns on fixed income were essentially flat and real returns negative."

"Today, the “smart money” is pursuing alternative strategies that involve longer-term investment in the real economy and, importantly, in the middle-market firms that populate it."

From: forbes.com/sites/realspin/2015/07/14/young-traders-get-ready-for-your-grandparents-bond-market/

Comments

  • JohnChisum
    Thanks for the link. One of the better ones today
  • Old_JoeOld_Joe
    The retirement implications of the scenario presented in that article are enormous.

    If "the nominal returns on fixed income were essentially flat and real returns negative", there would be no point in having bond exposure at all. You'd be better off with an FIDC insured bank account or CD, which also would presumably have a negative real return, but at least would be insured and easily available to the account holder.

  • JohnChisum
    Hence the increasing interest in alternative investments.
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