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Originally Posted by Enoch Root
The sheltered accounts of individuals account for only a tiny portion of investable assets. Tiny. The trend to dividend stocks is wide sweeping, and includes professionally managed money.
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I have no idea what you're trying to say. "Professionally managed money" manages a lot of individual accounts.
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Never is a very long time. It wasn't that long ago that the popular view was that interest rates would never be able to sustain levels under 6%.
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People have been lending money for a very, very, very, very, very long time. The historical rate is around 5%. So you're actually better off thinking that 5% is the normal rate and everything else is an aberration.
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Interest rates plummeted world wide when governments realized that debt burdens were killing them. There was a global commitment to lowering debt, reducing deficits, and fighting inflation.
Recently, we are seeing a bit of a return to deficit spending, and somewhat less concern about inflation (complacency is probably a better word). If these trends continue, and inflation rates start to rise, along with debt levels, interest rates will respond. Not likely to happen quickly, especially in any significant level. But never say never.
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QE was a different way to introduce liquidity back into markets, that has limited inflation to mostly real estate. This was a bit of an unexpected side effect as in Japan, where QE was introduced, real estate is not treated anything like it is in other first world countries.
But the last thing a bunch of indebted gov'ts are doing is raising interest rates. Besides they can just QE more.