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South China Morning Post: How to survive in the brave new world of negative interest rates

The new portfolio for perilous times is high quality bonds, gold and some cash

by Peter Guy

 

It remains an article of investment faith that low interest rates translate into stimulus and growth, but history and current events are proving this to be dangerously wrong. Negative interest rate bonds and bank deposits have become an expanding asset class.

The trade started in smaller countries then spread to Germany and Japan. Today there are close to US$17 trillion of negative yield sovereign bonds. And their issue by central banks is setting up another financial and political crisis that regulators and central banks will be unable to stop.

 

http://www.scmp.com/business/article/1992741/how-survive-brave-new-world-negative-interest-rates

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