4 ms·
Stock prices are okayish compared to interest rates of other investments. But a lot of money got printed which can/will lead to inflation which in turn pressuri
by tomthe 5y ago
Stock prices are okayish compared to interest rates of other investments. But a lot of money got printed which can/will lead to inflation which in turn pressurizes the FED/EZB to increase interest rates. If interest rates need to be rised we will see a lot of problems: Falling stock rates, defaulting countries, domino effects... Which will keep FED/EZB from doing that...
I expected a crash since more than 6 years and I expected a much deeper fall than March 2020 which kept me from investing enough into stocks :(
The much bigger issue than short/middle term monetary policy though is the demographic change/transition!
Look at https://ourworldindata.org/age-structure https://ourworldindata.org/age-structure
In the coming years, the baby-boomers will retire and instead of earning and investing money, they will take money out of the market and I am not sure where this will lead us. But I know this will be huge.