Does the U.S. Economy Help or Hurt Your Nest Egg?

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July 22 (Bloomberg) -- Jeffrey Rosenberg, chief investment strategist for fixed income at BlackRock, talks with Tom Keene about how U.S. economic conditions impact returns for retirement savings. He speaks in today’s “This Matters Now” on “Bloomberg Surveillance.”

May have a pot of money at the beginning of the retirement trail.

As expected, the expected return work the so-called assumption of investment return.

It is changing.

Not all of it is good news.

This is an important conversation.

Where is our expected return?

Expected returns are links to economic performance.

At the end of the day, the ability to generate returns is a function of the economy's ability to grow and deliver returns for investors, and the big story in the aftermath of the crisis is that you're in a lower level of economic growth and therefore a lower level of returns.

A big part of a lower level of returns for fixed income investors, for retirees, is the low level of interest rates.

We have lived in a world of zero interest rates -- for a long time.

It is a big part of the conversation what we get out of that, but investors have been faced with much lower bond years come in for retirees, that has been a big issue.

That had blended portfolio, am i looking for 4%, 7%? can i be more optimistic with what i see in equities?

You have to look at it over a different time horizons.

We have had a remarkably strong equity market returns, 30% plus returns last year, but that is very much a part of the cyclical recovery that is not sustainable.

When we look at long-term returns, you are really looking at a lower level of returns.

It may seem strange because we have had such strong returns, but it is really a lower level of returns.

Finance is a curve that looks like this, and you can argue 65.35 -- is all of that theory blown up?

One of the biggest drivers is the weightings in a portfolio, how much in stocks versus how much in bonds, but really what drives that idea is that on offset risks and equities, that you put them into a portfolio because they are a diverse of fire.

We had periods like last year where that backfired on you.

Periods like this year, that has worked, but you have to be in the right area of a bond market.

The right area of a 60/40 portfolio, somewhat surprising longer duration instrument, so the weighting of the portfolio depends on where you are in the fixed income portfolio.

Where am i on bonds really quickly i total?

Total return?

You have to play defense right now.

We heard a lot about that from policymakers are now, very

This text has been automatically generated. It may not be 100% accurate.

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