1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Canadian Value
Canadian Value
Articles (4624) 

How Low Interest Rates Lead to Pitfalls for the Equity Investor - Don Yacktman

March 15, 2014 | About:

Over the last 100 years inflation has averaged 3%. Over the last 50 years inflation has averaged 4%.

Investors today are very dangerously projecting extremely low inflation far out into the future.

The result is that investors are using Treasury bonds at 3% as a hurdle rate which is half of where they historically have been, and these low hurdle rates are driving equity valuations higher. Those higher valuations are likely to be temporary.

About the author:

Canadian Value

Rating: 0.0/5 (0 votes)


Please leave your comment:

More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by Canadian Value

User Generated Screeners

filmwatcherStable Dividend Growers
monomythJ Crew competition
WellrossFuture F Portfolio
marco.forzaniSHORT 2
pbarker4652 week low
samuelbfoxMini-Magic Screen
MNVBen's last filter 1
dellmsftInsider CEO Buying Reid
HOLKLSUMini Group IT Financial and In
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat