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Why Interest Rates Are So Low


Jimbo

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WHY INTEREST RATES ARE SO LOW

 

You will find that over any lengthy period of time bond returns and stock returns will tend to be closely correlated.

 

The reason why interest rates are so low is that the return on stocks is so pathetic.

 

The interest rate really reflects future expectations of returns on alternative investments.

 

These alternative investments are invariably stocks and real estate.

 

Negative real interest rates reflect the REAL expectations of returns on stocks in the future!!

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