Hacker News Reader

Gov bonds yield below inflation levels. In such conditions anything that can give you any return is worth extra. Stock market valuations are extreme because the monetary conditions are extreme.

View on HN

It's interesting how many people seem to overlook this. It, over-proportionally, affects assets with a far pay-off date. A stock could be worth $1 and $10 depending on the interest rate and have the same yield over xx period of time.

I have written about this in more details: https://omarabid.com/zero-rates-world

Reply on news.ycombinator.com