How ultra-low interest rates support higher stock market valuations but also make the investment environment more challenging. Is there a stock market bubble?
Topics covered include:
- How expensive are stocks on an absolute basis and relative to bonds
- What are examples of individual investor enthusiasm for stocks
- Why stock valuations and prices increase when interest rates fall
- Why lower interest rates make it more difficult for central banks to support stocks during a downturn
- Why TIPs might be a better choice for a long-term bond allocation
- Why deglobalization is a reason to increase the geographic diversification of stock portfolios
- How investors can make invest decisions without having an informational edge
For show notes and more information on this episode click here.