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THIS TIME IS DIFFERENT

Bonds that eat your money

In the current bizarre world of bonds, there are increasing signs that the world is reaching the limit of the effectiveness of negative interest rates

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Clearly markets are pricing in a very long period of very low interest rates. Despite expectations that interest rates will stay negative or low for the next three decades, what is unsustainable will not continue.

THE phrase 'This Time it's Different' is described as the four most dangerous words in investing. They are usually uttered at bubble peaks to explain a new paradigm in investing, cementing a trend that has been in place for years and is expected to keep up its run in the future.

A number...

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