3 ms·
> artificial low rates What do you mean by artificial here?
by milkytron 5y ago
> artificial low rates
What do you mean by artificial here?
- cudgy 5y agoFor example, Interest rates are so low that the traditional alternatives of stock investments are no longer present. Traditionally, a bond would include a rate that is beyond inflation. Nowadays, government bonds return rates below inflation. This is artificially low and creates a bubble in the stock market (and other assets like real estate) since the traditional option to put money in bonds has been artificially devalued.
- danuker 5y agoRates depressed by the central bank buying everything deemed "safe". Very few "natural" investors (as opposed to "artificial" central banks) would accept a 0.25% yearly return on their capital. https://tradingeconomics.com/united-states/interest-rate https://tradingeconomics.com/united-states/interest-rate