Good News Re Endowment

Dartmoose
Wed, 14 Jan 2009 00:51:41 +0000

Lol @ aerialblue…

I’ve been meaning to ask:

Why are we worried about the effect of a 6% drop, when the past few years we have had significant gains, including 2007 which saw 21.6% growth?

[Endowments grow wary, but see opportunities | Special Coverage | Reuters](http://www.reuters.com/article/reutersEdge/idUSTRE49L5Z720081022)

Have we already increased our spending by that much. If so, why can’t we just scale back those particular expenditures…?

The only answer I could come up with is that they are expecting multiple years of decline, so they want to be prepared for it now. But, i’m not convinced, because many predict that even if we aren’t fully recovered, the stock market will start back up (because it is an indication of the future).