Jimbo Posted April 9, 2003 Report Share Posted April 9, 2003 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!! Link to comment Share on other sites More sharing options...
DrStool Posted April 9, 2003 Report Share Posted April 9, 2003 Such a brilliant, and yet simple, insight. Thank you Jimbo. I always look for your posts each morning. Always on point. Link to comment Share on other sites More sharing options...
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