With or Without a Crash, the Financial Landscape is Radically Changing

The stock markets are being shaken these days, indexes are in the red, and months of gains have disappeared in a few sessions... Are we witnessing a temporary correction or is this a deeper and lasting crisis? It’s too early to tell, and we’re not going to play the guessing game. However, if we step back a little, we can acknowledge a deeply changing financial landscape, a historical changeover: it has to do with interest rates. It seems that the era of low rates, zero or negative, is coming to an end and that rates will start going up. The long-term interests rates (10 years) – the benchmark for the bond market – are rising in the United States and Germany after having reached a low in mid-2016. Since then rates are increasing, confirming the turn. Notably, the velocity of money in the U.S. has stopped decreasing since its high of 1997, which could confirm a return to inflation. One has to be aware that we are now experiencing a reversal of a “secular” trend. Indeed...

from GoldBroker.com https://www.goldbroker.com/news/with-or-without-a-crash-the-financial-landscape-is-radically-changing-1263