What to buy as interest rates sink to zero

JPM looks at the history of asset allocation in other countries using the US as example:

 The steady fall in UST yields, despite a strong economy and a large deficit, raises the prospect that the US could join the zero bond yield world of Japan and Europe in the next few years.

 ECB and BoJ have effectively fallen into a liquidity trap where extra liquidity has little impact given a weakened financial sector, the zeroyield bound, and backward-looking inflation expectations.

There are 1224 words left in this subscriber-only article.

Start your free 14-day trial today!

Comments are hidden for Membership Subscribers only.