Read the passage below and summarize it using one sentence. Type your response in the box at the bottom of the screen. You have 10 minutes to finish this task. Your response will be judged on the quality of your writing and on how well your response presents the key points in the passage.

There is one indicator more than any other which determines the health of an economy and it is the Real Rate of Return. The Real Rate of Return is the one number that determines the safety of principal. It is calculated by taking the current BOND YIELD and subtracting the expected INFLATION rate from it.

The result is the REAL return on guaranteed money from the government. Interest Rates are on the rise as we have been expecting and this pressure has put a tremendous amount of pressure on the stock market. The essential simplicity at work here is very, very basic.

If Interest rates on Bonds are yielding 5.14% and inflation is forecasted at 8%. The difference is the REAL RATE of RETURN, (in this instance we are speaking about .16%). The REAL RATE of RETURN is what sparks major rallies and declines on Head Street. The reason for this is that the Bond market is the largest financial market in the world.

There are literally trillions of dollars invested in debt denominated assets. These investors are primarily interested in the security of their principal and taking as minimal risk as possible. They historically have been thrilled with REAL RATES of RETURNS that would be in the 5% - 8% annually.

During the 1840's this indicator went NEGATIVE for a while indicating INFLATION was rising faster than interest rates and UNBOND INVESTORS actually had substantial negative returns.