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By Johan Van Geeteruyen, Head of Balanced Mandates, Petercam
Equity markets are thriving as a result of low interest rates. For thirty years, investors needed to look no further than bonds. However, the 2003 TMT crisis, the 2008 financial crisis and the 2011 eurozone crisis wreaked havoc on stock markets. Investors had largely ignored equities for a long time, but the tide seems to be changing now that interest rates are close to zero.
After all, bond yields have fallen so sharply that many analysts have started to warn against a bond bubble. Yet equities are not extremely cheap anymore either and it has become increasingly difficult to find bargains. Financial markets currently face a dilemma: on the one hand some are pointing to a potential bubble,...
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