In Search Of

Schlindwein AssociatesInvesting, Market Observations

Investors have been in search of yield for more than a decade. It began as policy responses to the Great Recession of 2007-2009 brought short-term interest rates to zero or less. The most recent policy responses to the Coronavirus pandemic have resulted in historically low yields on investments in and among asset classes. However, yield alone is not the full measure of investment outcome. That measure is total return, income received plus change in investment value. And most accurately, it is total return after inflation and taxes. A high-level review of yields and returns can provide perspective for investing yet ahead.

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