No. of Recommendations: 4
For some reason interest rates fascinate me more than stock price movements. Recently trying to explain them to my wife, it came to me that interest rates can be thought of as "expected returns". If assets generally become overpriced, their expected returns go down. Debt instruments express that lower expected return explicitly in their actual yield.

We've had a dramatic movement recently in rates, especially striking in the German yield:

Might this move be a harbinger for lower returns for all assets?
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