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A missing asset

In truth, this is a long-standing problem. MSCI researchers and Jay Ritter at the University of Florida have both shown that economic growth only rarely translates into equity returns.

In theory, there is a simple solution to this problem. Investors should be able to buy GDP-linked bonds. These are government bonds whose interest and principal are tied to GDP growth: they pay out more when the economy does well and less when it contracts, much like index-linked bonds' payouts are tied to the inflation rate.

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