Economic Update
The concept that our economy could be in poor shape, but equities would still rally seemed counter intuitive, but has proven to be spot on. Money the world over needs to be put to work, and in the face of sub 4% 10 year yields, equities look quite attractive. Or maybe we could say equities are not unattractive. Equity investors should pay careful attention to interest rates. IF interest rates were to rise, then the party for stocks would be over.
At this point, it does not look like rates are ever going up again, too much money looking for a return. Even with all of the government spending, the massive deficit, and the future credit rating being questioned, rates remain extremely low. Is deflation already upon us ?
j.o.y. to the world peter
Tags: equities interest rates