The Value of Low Interest Rates and Tom Brady

Jon Banking

The bull market for stocks is more than eight years old now, which makes it the second-longest bull market since the end of World War II. There has been a lot of change in the last 8+ years, yet the one constant throughout has been the persistence of low-interest rates.
Low-interest rates, which have been an offshoot of low inflation, low growth, and a high level of asset purchases by the Federal Reserve, have been the root of the stock market’s success.
They have been the basis for every buy-the-dip effort and they have been the signpost for pundits who have suggested there is no better investment alternative than stocks.
Low rates have helped rationalize lofty equity valuations and they have helped underpin corporate earnings expectations.
In brief, low rates are as important for the equity market as Tom Brady is at quarterback for the New England Patriots.

This post was published at FinancialSense on Via Briefing.com / 08/28/2017.