Psm Private Wealth Management Blog PSM Quarterly Investment Report Quarter 2, 2016

Expectations and Reality: Adjusting our minds to today's economic reality is not easy. Pre-financial crisis in 2008 we had been used to inflation over the prior decades of 4% or higher, so when our investments returned 6% or slightly more we were "ahead" pre-taxation. Now with inflation hard to measure (the core Consumer Price Index/CPI was at 1.1% at end of May 2016*) and investment returns in the 2% to 4% range things just don't feel the same. We're still ahead of inflation but construction is different. The inconvenient truth is that investment returns going forward will certainly be less than they have been over the past decades.read more