Impact of Interest Rates on Investments

Interest rates are the basis of all value.

I mean you know that if if you knew interest rates were going to be zero

for 100 years you would think 1 percent was a great rate of return.

But you also would know if you bought something was yielding 1 percent

or that was what it paid and rates went to 8 percent.

You'd lose practically all your capital. So it's an enormous factor.

And we don't know the answer.

Central banks don't know the answer.

All we know is that

it it's been useful in stimulating things and particularly asset prices now

for 10 years. And what we thought was temporary in

2008 and 9 in the way of monetary policy to stimulate.

We've just put our foot on the gas even further. The whole world has.