Imagine paying a highly educated, market-seasoned master of the financial universe to put your hard-earned cash in an investment that is guaranteed to lose.
About a quarter of the global bond market, or about $15 trillion worth of bonds, offer negative interest rates.Negative interest rates encourage government borrowing.Give me $10 today and I'll return $9 to you in a decade or so.Maybe you didn't go to Harvard Business School, but perhaps you recall an early lesson from your Junior Achievement class that tells you this is not how it's supposed to work.
Nicholas Colas, co-founder of DataTrek, put it plainly enough: "Bonds are supposed to pay the owner of capital something to pry the money out of their hands."now have invested about $15 trillion in government bonds that offer negative interest rates, according to Deutsche Bank.This financial insanity is overtaking the world because bond prices are skyrocketing as stock prices are nosediving. As more money flows into bonds, their yields go down — even below zero in some cases.
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