Low interest rates here to stay but don't expect stocks to re-rate

Low interest rates here to stay but don't expect stocks to re-rate. In a speech delivered last night by the RBA, Philip Lowe offered a timely reminder that global imbalances continue to depress the rates of return available to savers. Bond markets are telling us that as long as the global saving glut persists, interest rates should remain low. But from a capital budgeting perspective, stocks are unlikely to benefit from multiple expansion. The following article explores this thesis in more detail: (VIEW LINK)


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