As you probably know, Bill McNabb, our chairman and chief executive officer, spent part of Monday, January 23, interacting with Vanguard clients via social media—”taking over” our Twitter and Facebook channels.
“It’s not every day that a CEO reaches out to their client-base. The information has been valuable,” wrote one fan.
“Why not get social every day?” another fan commented.
It’s a new year, so here are a few investment and retirement thoughts that come to mind for 2012.
When it comes to investing, Theme #1 among investors, especially among the majority of the retired or conservative crowd, continues to be the insatiable search for yield. In this regard, I would encourage investors not to be misled by the spectacular total returns on fixed income markets. Long-term Treasury bonds were up 30% in 2011 (as measured by the Barclays Long-Term Treasury Index). That substantial total return arose mainly from a large capital gain due to falling interest rates. (Recall the sequence: Panic about Europe and a volatile U.S. stock market led to a flight to Treasuries by global investors, which drove up bond prices—i.e., resulting in a capital gain on bonds—and consequently drove down their yields.)
Along with about 50 million others, I’m a product of Generation X. I had a Dorothy Hamill haircut, spent my weekends at the roller-skating rink, and grew up watching Madonna on MTV (back when she was more controversial and they actually aired videos). And while there are plenty of characteristics—not all of them positive—broadly attributed to the “slackers” and “latchkey kids” of my generation, we’re generally turning out OK.
