[HWR_14]

> If “investors” wanted low gradual returns, they would buy bonds instead of stock.

If you buy Google, Amazon or Facebook, sure. But there are also lower-risk stocks. You can invest in P&G or J&J which are all about selling the same products again and again and again to the same customers and slowly expand by acquiring smaller companies with a similar business model.

[chaostheory]

Yes, and investors of those companies expect constant growth. Bond yields are no where near good enough for these investors. Case in point, P&G and J&J stocks have yielded about 500% and 300% in value respectively since 2000. It’s even higher if you go back further.

Like it or not, that is reality. Ie if people want lower yields, they invest in different industries, companies, or financial instruments.