| >Stocks? Remember dividends? Not so much these days. This one I have real issue with, ignores the much scorned buyback or any facet of capital investment.
Your issue trades at a certain eps multiple, you take earned cash, buy shares with it.
Sort of in a vacuum, it's the same business, why should the earnings change? But now you have less shares outstanding, so now your shares are in a more empirical sense worth more. If you want to consider it, the capital return can come from the company buying your shares.
It can be harder with a company like amazon when they had a X00 eps, but it's still all about valuation. Amazon circa 2019 /= Amazon 1997. >Government bonds? Do do negative interest rates sound? You buy one of these because either you have to or you think others will have to. Yeah, some truth here. Alternatively, you do it because you think rates might go lower still, and their returns aren't highly correlated to equities. There's also a theory I'm partial to where in the pockets of the world that have a crazy high amount of savings, even past encouraging entities to find better returns, negative interest rates make no bones about making the the cost of savings clear. >Real estate? Please. Take away price appreciation driven by easy money and few would bother "owning." In a personal sense, real estate you own is rent you don't have to pay. In an external sense, real estate you own/operate is cash flows you can bring in. The elevated markets admittedly tend not to look so great in cash flow metrics. |