Quote:
Originally Posted by woj
even at the current PE ratio of 20 (which some claim is very high) implied rate of return is at LEAST 5%... which is still a great deal compared to other asset classes...
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Bingo! Which is why stocks and (at least in Canada) real estate is doing so well. A third of government bonds now have negative yields. You're paying them to keep your money! As long as interest rates are low, other asset classes will continue to rise.