Likewise, there was a nearly 27 year period where gold produced a negative nominal compound return and a significantly negative real return.
In a world where annual inflation is running at a 3% rate (actually more if you think for a moment about your rising healthcare and educational costs), there is an overwhelming demand for a security whose rate of return is a negative real (inflation-adjusted) rate of 3%.
Most REITs in the category have provided a total return of 1% to 5% this year, compared with a negative 0.5% return for all REITs, according to PaineWebber.
Zero interest rates alongside rising prices means you're getting a negative return on your money and over time your capital is being eroded.
This is making it hard for investors, as those who recently purchased TIPs or inflation-protected T-Notes are currently set to get a negative return.
Senior executives of the telecom concern won't receive additional restricted shares tied to its relative stock performance if shareholder return is negative over a three-year period.
Remember that diversification comes with risks, and the possibility exists that you could have a negative return on your investmentsunless some of your investments have a guaranteed rate of return.
About 10% of all public U.S. companies pinch executive pay due to a negative return, twice the proportion that did so in 2008, estimates Irving S. Becker, head of Hay's U.S. executive compensation practice.
Other European investors snapped up German government short-term debt offered on Monday at a negative return, another sign of the bad economic and financial situation still overhanging the EU. The ugly financial situation in the European Union remains a major bullish underlying factor for the safe-haven gold market.
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Other European investors snapped up German government short-term debt offered on Monday at a negative return, another sign of the bad economic and financial situation still overhanging the EU. The dour financial situation in the European Union remains a major bullish underlying factor for the safe-haven gold market.
So despite having a drug in front of the FDA, AVEO is currently a negative return for its venture investors (the ones who have held large portions to date) or at most a marginal win (1.3x) for those that exited in 2011 (looks like Flagship has exited, whereas MPM, Highland have been holding at least some of their positions).
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But in September, they have fallen by 0.8%, the only month with a negative average return.
Since 2006, the five-week cycles have underperformed, averaging a significantly negative return of -0.43%.
The first fiscal year that Harvard experienced a negative investment return, according to its records, was 1974.
Five year Treasury TIPS were sold last week with a negative real return.
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Without a ceiling, pay plans typically allow senior officers to receive up to twice as many shares, even when there is a negative shareholder return.
Money market funds and cash equivalents (short-term certificates of deposit, T-bills) will yield below 1.0 percent for several more years, thereby generating a negative real return.
The same dynamic which is driving investors to buy 10-year Treasury notes at under 2.00%, again willing to accept a negative real return on their capital while inflation is running at a 3% rate.
Growth will return from negative numbers (a decline of as much as 5% in 2012) to positive (up to 10% revenue growth in 2013.) Investors who understand this will be able to properly navigate the timing of their semiconductor investments to maximize their return.
What I do know is that for the limited data set I have, the CRB index produced a nominal compound return of 0.77%, a real return of minus 2.16%, a standard deviation that is twice that of Treasuries, had a twelve month period with a loss of 48.74% and had a 27 year period with a negative compound return.
White Mountains has a negative rate of return of 1.97% and earnings yield of 11%.
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Currently, however, TIPS with a 10-year maturity are offering a slightly negative real return.
WSJ: Savviest Investors Pay Close Attention to 'Real' Interest Rates
Key stocks to avoid might be the bottom decile, which JP Morgan says yielded a negative 33% return in 2011 and significantly underperformed the market.
Investors who bought Treasury bonds at a 2% yield in 1945 earned a negative real annual return of 2.3% over the following 35 years, according to the Barclays Capital Equity-Gilt study.
ECONOMIST: The remarkable demand for low-yielding government bonds
Inc. was a close second, returning negative 5.2% on a total return basis.
T-bills yield a negative real rate of return now and 10-year Treasuries yielding 4% don't light my fire.
Most investors will agree that allowing emotion to affect investment decision making can have a significant negative impact on return performance.
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