Investors were told that their monies were invested in government debt and real estate projects that would produce a return of 6-7 percent per annum..
There is an old maxim in China: “He who chooses to ride the tiger goes wherever the tiger goes.” This has gained relevance for investors after China decreed over the past weekend that private schools set up to tutor Chinese students will have to become non-profit in order to continue operating.
Data shows that companies borrowed around $11 trillion to stay afloat during the time that revenues declined or disappeared. The repayment of this sum, along with the interest it generates, will impact profits and cash flows for years.
As of last Friday, the Standard & Poors Index, the basis for index funds under the same banner, had recorded a year-to-date appreciation of 11.29
Students of finance become acquainted with what is taught to be the “risk-free rate.” This is the return that can be obtained by investing in securities of the United States Treasury. Usually, the five-or ten-year treasury yield is counted as the benchmark rate, with potential returns taken as some increment of this rate.