"Death of Equities"

[clester]

Bill Gross: We're Witnessing the Death of Equities - MarketBeat - WSJ

According to Bill Gross.

Pretty depressing article. Basically he says stock and bonds will have low returns or a very long time and the average investor that is buy and hold can only expect about a 3% return.

 

[Warrenlm]

Now THAT should help pension funds to continue current employee contribution requirements. Sure seems that we are being lied to when experts say we only need to slightly raise the retirement age.... and only way in the future. When is someone going to say contributions have to double?

 

[clester]

Now THAT should help pension funds to continue current employee contribution requirements. Sure seems that we are being lied to when experts say we only need to slightly raise the retirement age.... and only way in the future. When is someone going to say contributions have to double?

One problem is that the average person is fed up with wall street insider trading, ponzu schemes, and outright lying as well as all the uncertainty of Washington and their collusion with wall street that they just want to put their money somewhere safe. That's one of the reasons trading volumes are so light.

Baby boomers that ran up the stock market are now running up bonds.

 

[Bullitt]

the average investor that is buy and hold can only expect about a 3% return.

I agree here and this is no secret. Incredible that most pension funds and insurance funds are still basing their calculations off the 8% market return. 8% is going to take a lot of luck in a deflationary environment whether one decides to trade or just index.

I think bond yields will go lower for years to come but you have to stay diversified because once that boat leans too far to one side, passengers will need to move to the other side to right it.

 

[Birchtree]

The Dow Jones Industrial Average rose 4.3% during the third quarter and is up 10% so far in 2012. As of Friday's close, 13,437.13, the Dow stands just a few hundred points below its all time closing high of 14,164.53 set in 2007. The Standard & Poor's 500 stock index is having an even better year with a 14.6% gain to 1440.67 on the heels of a 5.8% rise during the third quarter. How did the S&P 500 end up at 1440 despite skepticism, significantly decelerating earnings and weak economic growth - It really has been the Fed. C'mon bring on the bull manure.