FYI: Howard Marks recently said “The process of lowering rates causes assets to inflate. There will be more wealth piled up by the people who have assets and it’ll be harder for people who just have a little bit of savings to make a return.”
Marks is hardly alone in this line of thinking. “The Fed is punishing savers” is one of the most commonly used financial quotes of the last decade. And while there might be elements of truth to this, I think there’s more to the story.
There are a lot of problems in this world, but the idea that savers are being robbed by lower interest rates, in my opinion, is not one of them. Here’s why:
Regards,
Ted
https://theirrelevantinvestor.com/2019/08/13/the-quote-of-the-decade/
