Quote:
Originally Posted by GregWeld
Todd --- Found this by accident and thought it worthy of a post in response in a round about way to your question.
I can't live with a 3% return - with no capital growth - in an inflationary world.
(Reuters) - Bond investors need to revise their expectations of the returns they can make in the years ahead, said Scott Mather, one of three Pimco managers who run the firm's Total Return Fund following the shock exit of co-founder Bill Gross last month.
In an interview with Germany's Boersen-Zeitung newspaper, Mather, Chief Investment Officer for U.S. core strategies at Pimco, said: "Even if interest rates gradually increase, with a global portfolio of bonds with the best creditworthiness you can maybe expect a return of about 3 percent in the coming years."
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Yep, no thanks. I'm changing all of our existing IRA's to 100% equities. I'll worry about fixed income in 30 years.