emerging markets
Boomer investments may face headwindsPosted by RJ and Makay on Mar 12, 2012 |
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Baby boomers should expect lower investment returns in retirement, according to Robert D. Arnott, chairman of Research Affiliates in Newport Beach California. As the ratio of retirees to active workers expands, retirees will sell stocks and bonds to support themselves and there will be fewer younger workers to buy those securities, which may suppress prices, Arnott said.
Mutual fund performance in 2011 brought some surprising results, according to Standard and Poor’s and Morningstar analysts. Despite the positive outlook at the beginning of the year in emerging markets such as China, India and Brazil, portfolios heavily weighted in emerging markets had some of the largest losses for the year. By contrast, a concentrated fund with just 22 holdings and no new stocks added for the past 75 years was a top performer.
HSBC Holdings PLC announced it could cut about 30,000 jobs worldwide by 2013 as the bank plans to exit from some retail markets, although hiring in other parts of the company will make the net job losses much smaller, according to the company. Chief executive Stuart Gulliver said that 5,000 jobs are being eliminated in the U.S., U.K. France, Latin America and Middle East, and the lender plans to cut another 25,000 jobs during the next two years.
