“Interest rates where they are, stocks begin to look much more attractive,” Mobius says
Global central bankers are in interest-rate-cutting mode of late, as policy makers attempt to avert or at least mitigate a global recession.
‘Everyone seems to be racing to the bottom. Which is actually going to result in the market doing very well.’ “Interest rates [being] where they are,” he continued, “stocks begin to look much more attractive.” His comments come as the Wall Street Journal reported on Thursday that a European Central Bank policy maker, Olli Rehn, had said the ECB in September would unfurl a potent batch of stimulus measures that should include “substantial and sufficient” bond purchases as well as cuts to the bank’s key interest rate to prevent weakness emanating in China from hitting the eurozone.
The easy-money regime has fostered an atmosphere in which some $15 trillion in sovereign debt yields less than 0%, meaning that investors receive less than their original investment when they purchase government-backed debt.Against that backdrop, Mobius says yield-bearing investments will be coveted.
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