By SIMON CONSTABLE
There are interest rates. Then there are "real" interest rates.Looking at real rates can help you determine how much your purchasing power may grow, says Mihir Worah, head of the real-return portfolio management team at Pacific Investment Management Co., or Pimco.
Many of the savviest investors suggest paying closer attention to the latter. To determine the real rate, you need to start with the rate quoted for holdings in bank accounts, bonds and the like—it is known as the nominal rate—and then adjust it for inflation. Read original here.
No comments:
Post a Comment