Sunday, February 17, 2013
Danger: Low Returns Ahead
In this video James Mackintosh talks about his article, "Be prepared for future low returns," which appeared in the Financial Times on February 10th. Low interest rates now mean lousy returns for both stocks and bonds. This is based on work by three academics from the London School of Economics: "Looking across 20 countries since 1900, Elroy Dimson, Paul Marsh and Mike Staunton of London Business School found a clear link between real interest rates and future returns." Their research can be found in the Credit Suisse Global Investment Returns Yearbook 2013. It is free.