For many people, including me, falling interest rates have been the general trend in the bond market throughout our working lives. At the beginning of 1983, the year I graduated from business school, the yield of the benchmark 10-year U.S. Treasury note stood at more than 10%. It was less than 2.5% at the beginning of 2017. 

We’re living in unprecedented times, so we certainly can’t predict what 2017 will bring. And if you know Vanguard, you should know not to expect hot stock tips or “sure bets” from us either. But I do have four suggestions that I believe can help your clients reach their goals.

World economies will remain very fragile until the debt-deleveraging of the global private sector is completed. The global economy will move toward a more balanced and healthier equilibrium.  As a result, the developed economies such as the United States and Western European countries should contribute more toward global growth than they have in nearly two decades.  For these reasons Austin Capital’s view is a world economy in deceleration not a short term stagnation.