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A 60-40 equity/government bond split would deliver a return that was virtually zero in nominal terms.
Revert to two terms?
One who served two terms.
The honeymoon lasted two terms.
The two terms are interchangeable".
Chart 2 shows that for the last six years the Year-Over-Year earnings growth is virtually zero, despite the strong longer-term historical average.
But today short-term rates are virtually zero.
Having lowered short-term rates to virtually zero, the Fed and other central banks have purchased huge quantities of government bonds.
Mario Draghi, the head of the European Central Bank, announced that the bank had cut its funding rate — the rate it charges commercial banks for access to short-term financing — to virtually zero, and the yield on some euro-denominated two-year government bonds turned negative.
It reiterated that it would keep its benchmark short-term interest rate at virtually zero for an extended period.
The central bank released the report after its policy board decided yesterday to maintain its ultra-easy monetary policy by keeping short-term interest rates at virtually zero.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com