Howard Marks offers advice on how to navigate negative interest rates - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 28 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 51%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Billionaire Howard Marks gives his best advice for navigating an anomalous market where 30% of the world’s debt has a negative yield

But today, almost 30% — or roughlyA number of market pundits have weighed in on the debate, and explanations range from investor fear and deflationary expectations to the greater fool theory and lack of economic growth. It's hard to pin down exact reasoning behind the anomaly, which in finance usually means the true answer lies amidst the culmination of multiple ideas.

What Marks is saying here is that the future becomes more nebulous in the absence of a positive, risk-free rate of return that can be easily slotted into financial models. Tried-and-true valuation methodology — like the type highly dependent on historical relationships — suddenly becomes futile in a world of negative rates.

To accomplish this task, Marks suggests investors "move out the risk curve to strive for returns above those offered by safe instruments in this low-return world . . . but do so with caution."

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 729. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Amazon is expanding Prime delivery to cheap items - Business Insider - Business InsiderAmazon Prime subscribers can now purchase low-price items and still receive free next-day delivery, despite that it’s likely losing money on shipping.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Mark Zuckerberg advised Mayor Pete Buttigieg on hires, report says - Business InsiderTwo staffers have been hired to the Buttigieg campaign on Mark Zuckerberg's recommendation, Bloomberg reported. Being totally gay is not enough, bro. You need an opinion and a plan for something. He has no plans to win. Other people want to market him because he looks easy to control and swing. Both hilarious and stupid ways to try and win the presidency Pete has ZERO chance of ever becoming president, and, now he’s in bed with that crooked Zuckerberg and his old lady only shows, he’s as corrupt as he is boring.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »