Planning Briefs

There’s a new paradigm in valuing stocks and bonds. The change in the relative value of stocks versus bonds – the two primary investments in a diversified portfolio -- has major implications for strategic retirement investors. Here’s what’s happening.

The bond market expects inflation for the next decade to annually average 2.35%, according to a market-based measure of expected inflation known as the Breakeven Inflation Rate. The BIR is derived from subtracting the current yield on 10-Year Treasury Inflation Protected Securities from the current yield on a 10-year Treasury bond.