Why Financial De-Risking May Leave Consumers at a Loss
The term de-risk has been appearing frequently in recent financial news.
General Motors’ recent decision to offer lump-sum...
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Capital
Accumulated assets.
Yield-Starved and Losing Patience
It seemed obvious several years ago that retirees would shoulder much of the burden of the financial crisis and its residual effects.
While events have generally played-out in line with this projection, the backlash from seniors has been surprisingly subdued. The lack of pitchforks seems odd given the fact that the number of retirement age voters is increasing by 10,000 each day in the United States.
That said, the capital versus retirees story has been trending-up lately. This may have something to do with the election year. It could also could be the result of millions of savers around the world starting to...
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The Financial Impact of Aging Populations
A recent article published in the Financial Analysts Journal examines the relationship between demographics and both economic growth and capital market returns. The authors—Robert Arnott and Denis Chaves—use a new econometric technique to confirm a strong link between demographic trends and: excess (in excess of returns on domestic cash) stock market returns; excess bond market returns, and; real per capita gross domestic product (GDP). Ten year forecasts for GDP growth, bond market...
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Short-Term Focus has Adverse Impact on Retirement Income Product Development
Warren Buffett’s most recent shareholder letter focuses on the merits of productive assets such as equities in light of the current low interest rate environment and the potential for future inflation.
Buffett’s view is that although productive assets are variable and volatile, they are more likely to preserve future purchasing power than the fixed or currency-based alternatives.
Buffett’s advice would seem to provide a key...
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New China Life Pursuing IPO Despite Challenging Market
New China Life is seeking to raise $2.3 billion in an initial public offering that would list the company on exchanges in Shanghai and Hong Kong. New China Life is seeking the capital in market conditions that have been challenging for many of its peers. China Life Insurance Company and Ping An Insurance have both seen their stock prices decline over 30 percent this year. China Pacific Insurance Group has dropped more than 20 percent this year. A successful New China Life IPO would value the...
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