The Trouble With Falling Discount Rates

The trouble with the returns that come from falling discount rates is that they represent an increase in the present value of the asset without any increase to the cash flows. Falling interest rates, negative interest rates, accelerates future returns into the present, lowering future returns. What happens when rates eventually increase? You're going to see the value of some of these assets fall. So what do we do about that? Well we can own sort of low duration or zero duration assets. But that's about all we can do.