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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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From: OldAIMGuy2/5/2023 12:08:57 PM
   of 18917
 
Negative returns
for most of this 15 years.
Central Bank Warfare....



Prior to the New Millennium the 13 Week Treasury Rate was usually around 1 basis point above the CPI Inflation Rate. That all changed with new Treasury and FED policy brought on after the DotCom bubble. Since then, and specifically since 2008's 'financial crisis', fixed income investors have had a hard time creating a positive real rate of return. The FED and the U.S. Treasury seem to be waging war on senior citizens.
When will we see interest rates return to their historic trend of being higher than inflation?



It's nice to have Cash finally being a reasonable lubricant in our AIM engines. While not great, it's far better than it was during most of the last two decades.




For almost all of the New Millennium we've had negative real return on Cash as Inflation has been higher than Interest on short term treasuries, and that's harmful to AIM's total return. Even so, there's always a cost for insurance, even Portfolio Insurance. AIM insists we own some through most markets. That's okay, I wouldn't own a car or a house without insurance, either.


Best wishes,
OAG Tom
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