Comments (8)

Dec 2, 2010

It's coming back because nothing has changed from before it dried up.

Dec 2, 2010

So what changed when it did dry up?

Dec 2, 2010

People expect low returns from equities and pour their money into bonds / loans or bond / loan funds. As more money flows into the bond / loan market credit becomes easier.....

Dec 2, 2010
kiwiserv:

can any of the more experienced shine a light as to why its coming back

leverage == profit (when times remain good). It's how the world works.

Dec 2, 2010

why are people expecting low returns on equities right now? bc of the recession?

when people say equities is that basically stocks (as opposed to fixed income would be like bonds)

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Dec 3, 2010
jpu898:

when people say equities is that basically stocks (as opposed to fixed income would be like bonds)

yes.

Dec 2, 2010

it seems a lot of people are mainly backward looking. They see that equities had no upside in past 10 years and thus expect that to continue, while as bonds / loans outperformed.

Dec 2, 2010
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