These also open new concerns about lost intellectual property, Internet scams, and long-term return on investment.
What drove his success, say observers, was a willingness to invest in quality for a long-term return.
Giving away a big chunk of the upside in stocks during these rallies will damage your long-term return.
The hardest part of this strategy is believing that something so simple provides such a good long-term return.
Furthermore, this long-term return, high risk, engineering-lead venture, was financed by - wait for it - the City.
Bonds and cash help to moderate volatility and should be for diversification, but "not for long-term return, " he says.
After all, part of the long-term return from investments is compensation for the risk of investing in uncertain times.
You must be prepared to accept lots of uncertainty in your annual returns and some uncertainty in the long-term return.
All this might lead some investors to think that dollar assets will offer a better long-term return on their money.
And if they fall further, those long-term return figures will fall too.
The characteristics of an equity portfolio can be customized to complement an overall asset allocation strategy in meeting long-term return and risk objectives.
Bonds are a strong and important part of just about any portfolio, but owning them blindly and without consideration of long-term return is ill-advised.
Stocks provide a long-term return of 9.9% annually because they cause you to reach for a package of Rolaids more often than you would like to.
That's a shame for investors, because around 90% of the market's long-term return can be linked directly to dividends--the basic yield and then the growth over time of that coupon.
Furthermore, it may well be hard for investors to spot the difference between a fund manager who is able to produce a high, but volatile, long-term return and one who is simply erratic and incompetent.
ECONOMIST: Smooth returns can be a sign of danger for investors
These folks may decide to include asset classes that have no real long-term return with the hope that low correlation with other investment will generate enough excess return from rebalancing to make up for the shortfall.
Or slow and steady, long-term return?
FORBES: The Tortoise Is Still Right: Slow and Steady Can Win the Race
"Traditional trusts don't take into account that the inflation- adjusted, long-term return from stocks is almost four times the return from bonds, but this does, " says Stephan Leimberg, an adjunct professor at the Villanova University School of Law and author of the New Book of Trusts.
Dividends have accounted for well over half of the long-term real return on big-company stocks.
That's a little more than half the long-term average return from stocks and not unreasonable, if the bad news doesn't get much worse.
The only asset class they could find with a positive correlation was gold but the long-term real return of gold has been just 1% a year, barely better than cash.
He observed that, while it was difficult to predict stock market performance in the near term (one-year horizon), there was a strong relationship between the price-earnings ratio and the long-term market return (10-year horizon).
FORBES: How To Put The Current Market Into Historical Context
According to the Deutsche Bank Long-Term Asset Return Study, the last time interest rates were near current levels, in the 1950s, Treasury bonds lost 40% of their inflation-adjusted value over the following three decades.
When we spoke in October he predicted the swell of special dividends and sped-up payouts that have been announced since Election Day, but he does not see the long-term capital return strategy of companies changing.
FORBES: Dividend Stock Outlook: In A Low-Rate World, Beware The Lure Of Rich Yields
Step 3: Create a realistic view of long-term risk and return estimates for each asset class.
Rather, the long-term rate of return on stocks is determined by the ratio of share price to dividends.
Saving the bird in the long term will require the return of the nomadic Borana pastoralists, said Dr Spottiswoode.
He found that this smoothed the extremes of the ratio and improved its long-term stock market return forecasting ability.
FORBES: How To Put The Current Market Into Historical Context
This performance pattern is likely to persist this year if not longer with long term Treasuries in negative return territory.
Lydall ( LDL) lowered its expected long-term rate of return on plan assets to 7.75% for 2012, from a prior 8%.
FORBES: Caterpillar's Chinese Disaster Has Us Wondering, What Else?
应用推荐