Latest Posts

Amidst the more obvious lingering effects of a sluggish economy, such as slow job growth, decreasing incomes, low interest rates and shaky consumer confidence, there lurks a more insidious threat which, thus far, has largely been ignored. Inflation or the prospect of its resurgence has somehow remained under the radar; perhaps because the official measure, the Consumer Price Index (CPI), is still below historical averages, or perhaps because the government has done such a good job in convincing the public that inflation is not a real threat at the moment.

Although the stock prices are trading near their all-time highs, it hasn’t exactly been a joy ride for retirees who are counting on their retirement plans for a lifetime of income.  The type of unruly market action that we have seen over the last few months always unleashes a flurry of “expert” commentary that seems to be directed at those who are most vulnerable to flash declines. Specifically, the pundits are talking to those investors who are now relying upon stock market returns to feed their incomes and instilling doubt over their investment strategy. 

Caught in an extraordinary convergence of unhinged stock market volatility and historically low interest rates on savings, many people are rethinking their plans and their vision for the future, especially as they consider the prospect of having to stretch their retirement income over 25 or 30 years.

For as long as there has been stock markets, investors have intuitively known that expectations of returns come with commensurate expectations of risk; the higher return one expects the greater the risk one assumes in order to achieve it.