Past Tense?

We frequently tell investors that the past is not a reliable portent of future performance – but it does have a bearing on how we worry.
Scientists have known that on the whole, females of all ages tend to worry more and – and worry more intensely then men, according to LiveScience.com. Additionally, women also tend to perceive more risk in situations and grow more anxious than men, according to the report.
The reason? The researchers say that women are more likely than men to believe that past experiences accurately forecast the future.
The two new studies, involving both 3- to 6-year-olds and adults of both genders, tested the extent to which participants’ thought that worry can be caused by thinking that a past bad event could happen again in the future.
Study “Hauls’
For the first study, subjects listened to six stories that featured characters harmed by another person or animal in the story. Then, days later, that character felt worried or changed their behavior when confronted with the same wrongdoer who had hurt them before. (For example, if one little boy stole a toy from another, the child might be worried when he saw that boy again and hide the new toy he was playing with.)
In the second study, the scenario was repeated – except that the person or animal the character ran across later only looked similar to the one that had harmed them before. Then, at the end of each story, the participants were asked to explain why the character was worried or changed their behavior.
“Reaction’ Airing
Females, both children and adults, were more likely to use uncertainty to explain the character’s reaction – to explain the reaction in terms of events that might happen, rather than those that will happen. Women were also more likely than men to predict that the characters who encountered the new character who looked similar to the wrongdoer would feel worried because they thought the new character would also do them harm.
The studies, by Kristin Lagattuta of the University of California, Davis, were detailed in the September/October issue of the journal Child Development in the article, “Thinking About the Future Because of the Past: Young Children’s Knowledge About the Causes of Worry and Preventative Decisions.’

Keller Rohrback Announces ERISA Investigation Concerning SSgA Bond Funds

The Keller Rohrback L.L.P. law firm has is investigating State Street Global Advisors (SSgA) and State Street Bank&Trust Company for potential violations of the Employee Retirement Income Security Act (ERISA) by marketing funds with misleading statements on investment strategy.

According to an announcement from the firm, the investigation focuses on retirement plans that offer State Street’s Government Credit Bond Fund, the SSgA Intermediate Bond Fund, the SSgA Yield Plus Fund, or the SSgA Bond Market Fund.

State Street marketed these funds to retirement plans as investments that would provide “stable, predictable returns” in line with an index of U.S. government and corporate bonds; however, according to a lawsuit recently filed by Prudential Retirement Insurance and Annuity Co., State Street changed its investment strategy without notification (See Prudential Accuses SSgA of “Misrepresented’ Investment Strategies).

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The Prudential suit claimed State Street committed a large of portion fund assets into instruments that included “asset-based securities that overwhelmingly derived their value” from home-equity loans, mortgage-backed securities swaps, and derivatives, causing the funds to become highly risky investments that have caused substantial losses to plan participants who invested in the funds.

Last week, just days after the Prudential suit was filed, Attorneys General in Alaska and Idaho said they are looking into possible legal action against State Street Corp. over losses their state retirement funds suffered investing in two of the funds (See State Street Could Face Another Investment Strategies Suit).

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