5 ms·
For example, Interest rates are so low that the traditional alternatives of stock investments are no longer present. Traditionally, a bond would include a rate
by cudgy 5y ago
For 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.