The financial world has seen 700 consecutive years of falling interest rates. Fixed income is not an historic growth asset for this reason. Gold has preserved wealth as interest rates have fallen. But gold has done more – it outperforms most popular asset classes in the current negative real interest rate environment. We discuss why interest rates have fallen over that time, and what it means for bond investors in the age of negative interest rates. We also discuss why stocks do not outperform gold in an environment of stagflation, where economic health decreases. We also discuss why gold is firmly beating the stock market for the last two decades, and why your real returns from stocks and bonds doesn’t even compare.
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