Cities everywhere are setting themselves up to become the next Detroit
Reuters/Rebecca Cook
In the NIRP-heavy world I foresee, a portfolio balanced between major equity and fixed-income will be lucky to break even. Poor returns will be a thorny problem for anyone who is contractually obligated to use portfolio returns to pay certain amounts on certain dates but hasn’t set aside funds to do it.
Defined-benefit pension plans are the primary example. Today these exist mainly for public-sector employees. Private industry has shifted to 401(k) and other defined-contribution plans. Читать дальше...