you seem Russell, in Japan, there was no equity BID because bond yields were low, AND ALSO INFLATION was very low.. so real interest rates were at around zero.
The variable that triggers monetization of financial assets is the real interest rate, not the nominal one...
you seem Russell, in Japan, there was no equity BID because bond yields were low, AND ALSO INFLATION was very low.. so real interest rates were at around zero.
The variable that triggers monetization of financial assets is the real interest rate, not the nominal one...
Or is it just the sector mix - given that how much tech there is in US and that is the only sector which has returned consistent earnings over the last 10-12 years? Of course, counterargument could be that long duration assets benefit disproportionately from low real rates, but that would still not take away their earnings delivery.
you seem Russell, in Japan, there was no equity BID because bond yields were low, AND ALSO INFLATION was very low.. so real interest rates were at around zero.
The variable that triggers monetization of financial assets is the real interest rate, not the nominal one...
Does it make sense?
Or is it just the sector mix - given that how much tech there is in US and that is the only sector which has returned consistent earnings over the last 10-12 years? Of course, counterargument could be that long duration assets benefit disproportionately from low real rates, but that would still not take away their earnings delivery.