Would HYP rescind the new financial aid policies if the stock markets keep going down

Parents Forum
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<p>The recent decline in the markets will for sure affect the endowment returns for HYP. Would HYP rescind the new financial aid policies if the stock markets keep going down?</p>

<p>Here is an interesting article at Yale Daily News: Yale</a> Daily News - Endowment resilient in face of economic downturn</p>

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<p>Some analysts believe the Dow Jones industrials may drop substantially at the open. Terry Bedford, a Toronto hedge fund manager, thinks a 400-point drop on the Dow is not out of the question.
<a href="http://articles.moneycentral.msn.com/Investing/Dispatch/080121markets.aspx%5B/url%5D"&gt;http://articles.moneycentral.msn.com/Investing/Dispatch/080121markets.aspx&lt;/a&gt;&lt;/p>

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<p>Yes, the market is dropping substantially. But, that's why with major money investments like endowment returns, they hire the best fund managers to manage the money and ensure that even in a bear market, there's a return. Don't forget about short selling and bonds (as the interest mounts).</p>

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<p>Markets are still down.</p>

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<p>I have no inside scoop whatsoever, but my gut feeling is that if it had to, Harvard would spend down the endowment to keep the policies in place before it would incur the angry firestorm that would follow if it slashed aid. It would be bigger front-page news than the initial announcement. The new policy isn't going anywhere.</p>

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<p>I agree with Hanna.</p>