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Hitting the wall

Recurso electrónico / Electronic resource
Sección: Artículos
Título: Hitting the wall / R. Evan InglisAutor: Inglis, R. Evan
Descripción física: 6 p. Notas: Sumario: We haven't come fully to grips with it yet, but our financial world is going through a massive transition that will create challenges for investors in public and private markets. Pension plans, retirement savers, endowments, and foundationsand anyone else who intends to spend some of their invested assets in the futurewill eventually have to come to terms with a dramatically different level of investment returns than we have gotten used to. This new world of returns will be driven by low interest rates, which create high asset prices. Low rates, or more precisely the almost 40-year steady decline10-year Treasuries went from yielding higher than 15 percent in 1981 to below 2.0 percent and now hover a bit under 3.0 percentis a double whammy for returns. The decline in rates simultaneously increases past returns and drives down the potential for future returns as it pushes up asset prices, creating a huge disconnect between our past experience and the future that is likely before us.Registros relacionados: En: Contingencies : American Academy of Actuaries. - Washington : American Academy of Actuaries, 2019-2024. - 07/03/2019 Año 2019 - March-April , p. 24-29Materia / lugar / evento: Productos financieros Mercado de seguros Inversiones Ahorro a largo plazo Tipos de interés Jubilación Otras clasificaciones: 212
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