The future value of every investment is a function of it’s present price. The higher the price you pay, the lower your return will be.
If the liquidity or risk characteristics of securities differ, … then changes in relative demands by a large purchaser have potential to alter relative security prices. The same logic might lead the central bank to consider purchasing assets other than government securities, such as corporate bonds or stocks. Please follow and like us:0
There are lots of smart people. But there are few that can think about things that have never been thought about before. “It reminds me of the young guy who went up to Mozart and said, ‘I’d like to write symphonies.’ When Mozart said, ‘You’re too young,’ the young man replied, ‘But you were young […]