Jun 15, 2017 admin
Have you ever wondered why stocks keep heading north, and bond yields keep falling?
The laws of Economics and Finance usually suggest when stock markets are at all time highs (as they are now), that the economy is in expansion; ie it is doing really well. This means unemployment should be at lows, and inflation is probably strong. It also suggests that interest rates are probably high in response to those two measures. But interest rates aren't high... Instead, interest rates are also at all-time lows, or negative in some examples (Switzerland, Europe, Japan).