
2020 in Review
The Memo by Howard Marks
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Fed Says Rates Will Be Low for Years to Come
A declining rate environment lowers the de ded returns on assets, making for higher asset prices. The Fed says rates will be low for years to come, but are there limitations on its ability to make that happen? Can the fed keep rates artificially low forever on longer maturity bonds? And what about inflation? Will people buy it at a negative real yield, or will the price fall so that it yields more? Where could inflation come from?
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