site banner

Small-Scale Question Sunday for October 15, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

6
Jump in the discussion.

No email address required.

There is a very important general point here, which is that if asset markets are telling you to adopt a particular investment strategy, and you do not have a good personal reason not to, then you should do what the markets are telling you.

Low interest rates (strictly speaking, low real interest rates) are asset markets telling you to invest in real assets (equity of non-financial companies, real estate, your own business) and avoid financial assets (bonds, cash, arguably bank equity, at the margin even paying down debt). The market is telling you to invest in real assets because not enough other people are, so if you follow the market's advice both you and society should benefit.

What I want to know is how you become a market-whisperer who can discern what they are saying. :D