By Vitaliy Katsenelson CFA
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Interest rates that stay low and actually keep declining for almost a quarter of a century slowly propagate deep into the fabric of the economy.
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| Interest rates went up and refused to decline. They are high in relation to where they came from, but they look reasonable in relation to inflation, which is running about 3%. Bulls argue that current interest rates only appear to be high in relation to the last 20 years, and they are actually low if you look at the 30 years before the turn of the century. This argument is historically accurate, but it is missing a very important point – interest rates that stay low and actually keep declining for almost a quarter of a century slowly propagate deep into the fabric of the economy. Let me try this analogy. HERE: Understanding Today’s Economic Landscape |
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