Posted by sbaxman111 on 2nd of Aug 2016 at 09:57 am
If State and City officials wanted to come clean with all of their
public pensioners, they should just move to target a planned 5%
investment return assumption and then shoot to surprise on the
upside…
According to BlackRock Inc., it’s going to be really hard for any
asset class to give investors returns above a mere 6 percent in the
coming years. In fact, according to BlackRock Inc.’s Global Chief
Investment Strategist Richard Turnill, most won’t even scrape 5
percent.
“Our five-year return assumptions have steadily moved lower since
the financial crisis, amid weak global growth prospects, easy
monetary policy and rising valuations,” he writes. “We have lowered
our assumed returns for most fixed income assets, following a drop
in yields (and rise in valuations) in the second quarter.”
Public Pension problems
Posted by sbaxman111 on 2nd of Aug 2016 at 09:57 am
If State and City officials wanted to come clean with all of their public pensioners, they should just move to target a planned 5% investment return assumption and then shoot to surprise on the upside…
According to BlackRock Inc., it’s going to be really hard for any asset class to give investors returns above a mere 6 percent in the coming years. In fact, according to BlackRock Inc.’s Global Chief Investment Strategist Richard Turnill, most won’t even scrape 5 percent.
“Our five-year return assumptions have steadily moved lower since the financial crisis, amid weak global growth prospects, easy monetary policy and rising valuations,” he writes. “We have lowered our assumed returns for most fixed income assets, following a drop in yields (and rise in valuations) in the second quarter.”
( Bloomberg )
Here's Grantham's 7 year forecast,
Posted by a_l_ on 2nd of Aug 2016 at 10:12 am
Here's Grantham's 7 year forecast, which has a very good track record over the decades.