I remember taking a personal finance class more than 20 years ago and seeing a neat little graph in the textbook showing a straight line at a perfect 45 degree angle: the higher the risk, the higher the reward.

One obvious consequence is that higher interest rates tend to put pressure on asset prices.

Stock prices surged as a result of this artificial demand.

But I'm illustrating that the risk differential between the two options is essentially zero.

The people who drive these policy decisions are being EXTREMELY vocal.

Categories: ZH