How to Survive the Control Freaks

28.07.2016 • Investing

From London Investment Alert (Great Britain)-

The concept of paying interest goes back to the Babylonians. In the modern day, the business of banking has been based on paying savers and charging borrowers for money. The notion of negative interest rates, paying banks for the privilege of holding funds, defies this established convention. The aim of this unconventional policy is to convince people to spend and invest rather than save. The results so far have been mixed. This brings up the worrying possibility that central banks might be running out of options to boost economic growth nearly ten years after the start of the last financial crisis. Ideas that were once thought implausible, like helicopter money and a cashless society, are now being considered openly. In this environment, it clearly makes sense to keep one’s exposure to cash as modest as possible and to divert one’s capital into more productive assets – notably income-generative stocks trading at undemanding multiples. Other than US Treasury bonds, which still offer a positive yield albeit are outrageously expensive, most bond markets have become utterly uninvestible.

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