![]() ![]() When inflation is high, central banks usually adjust their policy interest rates to be even higher, to help cool demand and bring inflation back down. The impossibility of negative interest rates was challenged in recent years as government bond yields across the globe and maturities across the spectrum fell below zero, driven by low inflation and unconventional central bank policies. ![]() As investors have been confronted with negative interest rates, once thought to be impossible, this unorthodox habit seemingly becomes relevant. ![]() The White Queen advises Alice to practice believing in the impossible. Fortunately, while much of it may seem mad, investors can make sense of it. The Alice in Wonderland economy has been confusing and disconcerting to many investors. Statements by politicians that seem ambiguous or contradictory. Rising stock prices while corporate profits fall. Negative interest rates where lenders pay borrowers.Ī steadily growing global economy where business leaders remain pessimistic. Investors have been confronted by odd, upside-down and seemingly illogical developments such as: One-hundred and fifty two years later, the global economy has investors feeling that they too have been handed something strange and bewildering to read. On November 26, 1864, the first copy of Alice in Wonderland was given by the author to the real Alice. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |