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Strategies & Market Trends : Retirement - Now what?

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To: Dale Baker who wrote (10)10/20/2004 10:28:13 PM
From: Nazbuster  Read Replies (1) of 288
 
Good questions Dale. For me, the return needs to reflect the risk. I'd be happy with 8% with little or no risk, but that's because I need the $ associated with 8% of my investment capital. If I'm to take more risk, I want higher rewards. So it's all in the balance.

I've never been fond of bonds because of the fixed income but exposure to bond-basis risk. With rates so low, the risk seems high and the rewards suck.

The stock market is vulnerable in my opinion since 75% of our economy comes from consumer spending and much of that was prompted by tax cuts, refinances, and a sense of prosperity from housing appreciation built on low rates.

I can't see how the spending levels can continue unless wages rise or productivity increases simultaneously with creating more jobs, a difficult combination. So I see trouble ahead for housing which will mean belt tightening.

You have any suggestions on strategy?
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