The term "lower for longer" has been coined by the financial media to describe the most recent period of low interest rates over the last 6 years. It was unthinkable 6 years ago that today, 6 years later, the 10 year Treasury Bond rate would be sitting at about 1.5%. Because the income from bonds and other interest bearing investments is paltry, investors are turning more and more towards investments in dividend paying stocks and limited partnerships. I had previously been squarely in the camp that believes we would see interest rates increase toward a more typical (or normalized) level driven by GDP growth, employment growth, wage growth, and healthy inflation. Over the last year I have read through dozens of articles including a number on economic history, taught a class in economics and investing, and given this subject a lot of thought. As a result, my thinking has evolved to an alternate possibility. The US and much of the developed world may very well see interest rates low for very much longer, possibly decades.
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