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, eclipsing the previous peak of $17trn in August 2019. A question of antitrust: Make jurisprudence great again Today, a quarter of the world's investment-grade debt trades with a negative yield. It is not surprising, then, many investors seeking returns among this harsh environment conclude there is little alternative to equities. Unlike during the dotcom frenzy or the housi...
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