Look into your crystal ball and imagine this hypothetical headline 10-years from now: “Government Bonds Deliver Negative Real Rates of Returns for 10-years Straight!” “Is this even possible,” you ask? Yes, when you consider the extremely low yields bonds are offering today and the possibility of inflation over the next 10-years. Of course there is […]
Are Bonds a Sure Thing? Read More »
Think about this: Let’s assume you have two boats: a rowboat with two good oars, and a sailboat with a great sail. You head out to a lake where the wind is always blowing from the North. The wind usually picks up around 11:00AM and remains strong and steady till sundown. It is obvious that
Sailing vs. Rowing Read More »
When I opened my email this morning, I saw the following subject line: “Hartford Financial Services Group announced that they are exiting the Variable Annuity business.” Last year, Genworth Financial eliminated their Variable Annuity product offerings. And earlier this year, Allianz Financial announced that existing clients would not be able to contribute any more funds
Here’s a crazy fact: At the end of 2011, the S&P 500 index(1) ended at exactly the same 2010 index number of: 1,257!! What makes this more incredible is the fact that 2011 saw some of the greatest stock market movement (called volatility) in history, yet it finished virtually unchanged. These facts alone should be a
Investment return of 0%? Read More »
