Our hosts speak to three experts in this episode about interest rates, including where they might move and how they impact investment portfolios. AQR Principal Michael Mendelson puts today’s rates into historical perspective and explains how difficult they are to predict. Miles Kimball, professor of economics at the University of Colorado, Boulder, discusses how negative interest rates for a short time might actually benefit savers more than zero interest rates for a long time (for more information on Miles, see his blog). And just how low can rates go? David Kupersmith talks about how the floor keeps getting lower. Our hosts wrap it up by explaining what all of this means for bond investors.
August 21, 2017
In 2016, bond yields dropped to unprecedented low levels in major developed markets. Even in a low rate environment, we think it’s important to diversify across many return sources.
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