- More than a quarter of the world’s bond market currently yields less than zero percent, including almost all of the German government’s debt.
- Economic theory would suggest that negative nominal yields imply deflation.
- Central banks may loosen monetary policy still further, pushing official rates even lower, in an attempt to stimulate economic growth. It is questionable how effective this might be.
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The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.