ZIRP-unintended consequences--fisher international effect

based on interest rates and the importance of the euro and USD for global trade. we're seeing an irrational shift thats artificially effecting equity volatility . ZIRP or zero interest rate policy in euro zone. is driving demand for USD and us treasuries vs eurozone risk off assets. this flow is exploiting an already dramatic difference in interest rates globally. when bonds rally equities tend to fall. the bund last week hit an all time low of -20% yield on the german 10 year. aint that crazy people are dumb enough to buy an asset that has a 20% premium attached. thats right people are so afraid theyre willing to buy something and receive 20% less afterwards.. that being said people are choosing to go to US risk off USD and treasuries instead where they actually have a chance of making money. that transition is causing volatility . equity volatility is non-exsistant, but bond flows are overpowering flows.. INVESTORS MUST REMEMBER THE DISCOUNTING MECHANISM FOR FUTURE VALUE AND GROWTH IS.. THE RISK FREE RATE (US 10 YEAR YIELD) if the risk free rate is falling like a rock.. what is that saying about risk in US assets vs the world? thats exactly why im beyond bullish
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