Global real interest rates and the ‘suprasecular’ decline, 1311–2018 (2020)

Re:Global real interest rates and the ‘suprasecular’ decline... by bertjk on Thursday January 28, 2021 @10:13PM (#25953321)

The price is paid every time someone has to overpay for housing, and every time someone deposits money into their 401K which will invariably be invested chasing riskier and higher priced assets, whose future returns increasingly depend on stock appreciation, and less on dividend yields which will never catch up. Consider for a moment the common advice to just "buy and hold the SP500", and then the recent news that TSLA just joined the same.

They are slowly making it a foregone conclusion that any policy that favors companies with actual operating returns over inflating ratios will necessarily crush everyone's retirement portfolios, and therefore any such move would be politically untenable.

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Re:Global real interest rates and the ‘suprasecular’ decline... by imtringued on Friday January 29, 2021 @07:44AM (#25956665)

Yes, this is why I always say that capital gains taxes should be increased and dividends taxes decreased.

It discourages hoarding. You can make capital gains off of so many different reasons that have nothing to do with the performance of the stock. It's insane.

Meanwhile dividends are entirely dependent on the income of a company. You can't cheat dividends because it's the company that has to pay them, not other investors that can drive irrational behavior.

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