Friday, October 16, 2015

Shades of Nothingburger

October 16, 2015
The nagging question for investors: Is 2% enough?

1. The 10-year Treasury yield (^TNX) has retreated to 2.02%, on soft inflation measures, depressed global yields, the quest for safety and waning expectations of a Federal Reserve rate hike this year.

2. In a notable bit of symmetry, the dividend yield on the S&P 500 index (^GSCP) is now in the same zone, at 2.15%.

Now you just need to find an overpriced wealth management professional who charges you 1% per year and advises you to put your money in a mix of treasury bond and stock market funds that also charge 1% fees.

The future's so bright, I gotta wear shades of nothingburger! Woohoo!

Not gloomy enough for you? Expected better of me? Not a problem!

Two words: underfunded pensions.

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