Bonds break long-held investing rules

The News Review:

- Bonds break long-held investing rules
- EBRD Likely To Have Bigger Role As Investment Dries Up
- Time action needed to heal pain in 401(k)

Bonds break long-held investing rules
MarketWatch
Now Rob Arnott a veteran financial analyst and market pundit has lobbed the academic version of a Molotov cocktail at one of the most sacred tenets of investing. “For the long-term investor stocks are supposed to add 5% a year over bonds. They don’t” Arnott founder of investment consultants Research Affiliates and former editor of the Financial Analysts Journal wrote in a paper published in the latest Journal of Indexes. “Indeed” Arnott contended “for 10 years 20 years even 40 years ordinary long-term Treasury bonds have outpaced the broad stock market. “Next Page >>View Entire Story.

EBRD Likely To Have Bigger Role As Investment Dries Up
Wall Street Journal
–>EBRD Likely To Have Bigger Role As Investment Dries Up ArticleCommentsmore in. When it was established in 1991 the EBRD was conceived of as a new kind of development institution one that encouraged private sector financing. But the long-term consequences of the financial crisis will reduce the amount of private capital available to the region likely reducing the EBRD’s catalytic effect increasing the need for it to commit its own resources.

Time action needed to heal pain in 401(k)
Chicago Tribune
If your annual salary is $50000 and you typically save 6 percent of your pay in six years you would have rebuilt what you have lost. That’s assuming your employer provides a 3 percent match for your money and that you make an average of 5 percent on your investments each year. If you keep investing 6 percent of your pay for the next 10 years your savings would approach $400000. And if you can keep working for 15 years you would have more than $500000.
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