5 experts on how negative interest rates could impact markets, investing - Business Insider

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Warren Buffett calls the prospect of negative interest rates the 'most interesting question I've seen in economics.' We had 5 financial experts weigh in on how they could impact the investing world as we know it.

"There's money that could go or will go to stocks, and maybe to good old high dividend companies … where people are desperate to get some yield," Sichel said. "That's not an ideal situation and they have to know what they're getting into."

"Pension funds, endowments, state entitlements – all of those have a minimum yield they have to reach, and order to do that, a large portion of that would be bonds, it would be cash, in addition to equities," Valletutti said. "If you take away the yield in bonds and cash, you're forcing them to reach for yield in other areas, and that's going to be in the stock market, it's going to be in higher yield junkier bonds – basically riskier assets.

"You can't really have negative rates on the reserve currency," Lepard said. "I mean the reserve currency is supposed to be the safest place to go, so if rates are negative, what do you do, right?"

 

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