re: "Volatility Is Lowest Since the Great Depression"

quote:

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I'm curious as to whether or not you are serious about the entire statement here since Doc e-laughed. If so, are you referring to monetary policy? Do you think interest rates are going to stay very low for the foreseeable future?

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A couple things, the biggest overriding factor being lower growth in developed nations. Everything else kind of flows from there; much more involved monetary policy, lower investment returns, and higher correlation among asset classes (risk on vs. risk off). The rate question is an interesting one, do I believe we'll be in a range lower than historically? Absolutely. Very low (i.e. 1.5% 10-year) I don't see simply because investors do not want to bite that duration for no income. The involved monetary policy will keep rates low but also the huge supply/demand mismatch Poodle and I reference earlier.

Long story short here's the deal with the US. The average worker does not have the skill set to support their current wages. Due in part the structural problems with education and also due to this entitled mindset that the average American has. I give politicians a lot of shite but the fact of the matter is we almost always get the politicians we deserve. We want quick fixes as a society without paying for it and that is what politics usually gives us while never addressing the actual problems. Lower growth is a product of this.