A retired accountant already known to may of us in fact. Telling us about pensions. And how FTSE just isn’t the right thing.
Which is why what I wrote on pensions in 2003 and in 2010 continues to make sense. We have to invest pension funds in the assets that people want, can see and can ebenfit from and that deny the City the chance to fleece tose assets of value on the way. Those things are called schools, hospitals, transport infrastructure, housing and the green economy. These give rewards now and pay dividends until most people will be of retirement age – unlike most investment in equities or second hand shopping centres, which is the other great pension favourite, or even corporate bonds.
You might recall his plans for those very different pension investments some years back. What was to happen was that all the pensions should be invested in those schools’n'ospitals via the medium of bonds. Bonds which would pay 3% interest.
All of which makes it very interesting indeed that in his talking about the FTSE 100 he doesn’t manage to mention the dividend yield. Which is, near enough, around 4% at present isn’t it?
Rather reminds me of the time he proved, PROVED I TELL YOU!, that his bonds would produce better returns than the stock market. By leaving out of the stock market returns that very dividend yield.