We all have different views of what is most attractive. Some people care less about looks but gravitate to those who offer income and security. Others prefer big capital assets or shapely double bottoms.
T-bonds and bank certificates of deposit used to be appealing. Their youthful attraction has waned with the aging effects of ZIRP (zero interest rate policies). Shares of stogy old companies now defy their age. They have once again become market darlings under the new acronym of TINA.
Money markets at 12 basis points? Ugly. Locking in for one, two or five-year CDs for a pittance? Unthinkable if you expect to beat the true cost of living index rather than the garbage the BLS feeds the public.
Government bonds? You’ve got to be kidding. They only offer all reward-free risk.
It’s not that equities are stunningly cheap. The reality is that they look exquisitely beautiful standing next to all other choices. Never-ending money printing is guaranteed to devalue the purchasing power of dollars, yen and euros.
Smart investors are dating stocks because TINA is in the house. She’s the only woman on this desert island and demand for her is only going to go up.
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