When the German government gets away with paying negative interest, it’s a sign that investors don’t think they have better options. If they did, they would be putting their money into them. After a long, strong rally in the major world markets, it’s time to lower your expectations for growth.
On the bright side, individuals have a big advantage over the pros at a time like this: They don’t need to put up with negative rates, because they don’t have millions of dollars in need of short-term safekeeping. And they don’t have to report their results quarterly, so they can tune out the din of conflicting advice and focus on the long run.
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