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I agree that many assets are now correlated stocks and bonds for example. But for a bond to go to absoulte 0, would take a lot. Also I'm not sure that small i
by UK-AL 11y ago
I agree that many assets are now correlated stocks and bonds for example.
But for a bond to go to absoulte 0, would take a lot.
Also I'm not sure that small increases in the interest rates would that much of a disaster. We've been in situations with low interest rates before, and increments in the interest rate didn't harm stocks in the long term.
In many ways it's a positive indicator, that goverments see a positive future.
When the fed announced that the interest rates were on hold. Stocks went down.
There is a lot of lose money in the system though from low interest rates.