Tag: retirement investments
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…
The brief’s key findings are: Retirees seeking safe investments generally prefer short-term deposits, which preserve capital but offer no guaranteed return. Fluctuating returns can jeopardize a household’s living standard if short-term interest rates fall. In contrast, bonds provide a guaranteed return and – if held to maturity – also preserve capital. The bottom line: bonds…
