Zombie Dynamics
With central banks now poised to plunge headlong back down the accommodation rabbit hole in an effort to bolster flagging inflation expectations and keep the global manufacturing slump from spilling over into the services sector and, ultimately, the labor market, market participants are again fretting about "policy impotence".
In short, the worry is that with rates, at best, just barely off the lower bound and, at worst, still mired in NIRP, and with balance sheets still bloated, the capacity f
Other than that , and especially including the peace and stability in World Geopolitics we have an economic system ( running like a well oiled clock , led by a large brained genius ) that is worthy of equities at record highs….Right???
The other side of the coin of very low interest rates is very low rates of return on investment. This will mean among other things that almost all of the very high p/ e stocks are guaranteed to disappoint investors ; the question is just when.
And very low rates of return discourage future investment. Less future investment means fewer jobs in the future with the associated social unrest
But it does make for the very best time to START a business.