Abstract

<h3>Practical Applications Summary</h3> Overview Five Mysteries Surrounding Low and Negative Interest Rates, published the Spring 2017 issue of <b><i>The Journal of Portfolio Management</i></b>, cautions practitioners against taking extreme measures in what may appear to be extreme times. Authors <b>Laurence B. Siegel</b> of the <b>CFA Institute Research Foundation</b> and <b>Stephen C. Sexauer</b> of the <b>San Diego County Employees Retirement Association</b> find that the so-called “mysteries” of negative rates can mostly be demystified by solid application of familiar economic theory. They urge long-term investors to take a conservative investment approach to the current climate, sticking to portfolio management fundamentals and steering clear of expensive alternative investments that promise high performance in a low-return world.

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