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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (46888)	3/2/2004 5:43:28 PM
From: Mark Adams	Read Replies (1) \| Respond to of 74559

Ageing, the German rate of return and global capital markets dbresearch.com In summary, by overcoming home bias & diversifying investments internationally, Germany offsets the 'reduced rate of return' effect of attempting to invest increased pension savings domestically. Reduced rates of return on pension savings increases the amount of savings required, creating a negative spiral. Additional productive capital outlets relieve this pressure. What if multiple nations attempting to 'save' and 'invest' for 'future pension needs' with sophisticated managers less subject to 'home bias', compete in an international arena? Is it possible that while any one country could diversify internationally, thus avoiding depressing rates of return, all countries attempting to do so would reveal a 'fallacy of composition' error? Attempting to 'save' to 'meet futures needs' on a 'macro scale' effects Insurance, Private Pensions, and US domestic Social Security reform, all of which embody some form of 'future promise to pay'.