Archive: Dan Muldoon
Abstract The maturation of the 401(k) system and the enactment of the Pension Protection Act of 2006, which made 401(k) plans easier and more automatic, were expected to enhance the role that 401(k)s played in the provision of retirement income. So, originally, the release of the Federal Reserve’s 2007 Survey of Consumer Finances (SCF) seemed…
The brief’s key findings are: Stocks have diverged from historic averages for periods of 10 to 20 years. This divergence reflects fluctuations in: 1) corporate earnings; and 2) investors’ assessments of those earnings. Corporate earnings vary, but tend to stabilize and return to long-term economic trends within a few years. In contrast, investors’ valuations hav…
