Image:
Giles Parkinson of Aviva Investors
Interest rates, it has been said, are financial gravity. When rates are high, stock prices should be lower, because they reduce the present value of the future cashflows equity investors lay claims to.
The opposite is also true; when rates are low, stock prices should be higher. In early November, the market value of the Bloomberg Barclays Global Negative Yielding Debt index rose to a record $17.5trn,...
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