FYI: To help prevent the next Great Depression, in 2008, the Federal Reserve increased the “price” of avoiding risk.
Fearful investors seek the safety of Treasury bonds (as well as government agency bonds and FDIC-insured CDs). When they do so, they forgo the risk premiums available from non-Treasury debt and equity investments. Driving the rates on Treasury bills to virtually zero led many investors who rely on a “cash flow approach” to investing to frantically search for higher yields.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-why-chasing-yield-fails?nopaging=1
