Courtesy of Paul Price
We all have different views of what is most attractive. Some people care less about looks but gravitate to those who offer income and security. Others prefer big capital assets, or shapely ‘double bottoms.’
T-bonds and bank certificates of deposit used to be appealing. Their attraction has waned with the aging effects of ZIRP (zero interest rate policies). Shares of stogy old companies now defy their age. They have once again become market darlings under the new acronym of TINA.
Money markets at twelve basis points? Ugly. Locking in for one, two or five year CDs for a pittance? Unthinkable if you expect to beat the true cost of living index rather than the garbage the BLS feeds the public regarding inflation.
Government bonds? All risk, no reward… The rates are terrible.
It’s not that equities are stunningly cheap. The reality is that they look exquisitly beautiful standing next to all other choices. Never-ending money printing is guaranteed to devalue the purchasing power of dollars, yen and euros.
Smart investors are courting stocks because TINA is in the house. She’s the only woman on this desert island and the demand for her is going up.
