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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

As the risk-free rate rises, expected returns on equities will be pushed up, and holding all else constant, stock prices will go down., and the reverse will occur, when risk-free rates drop.

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Transcript: Tim Buckley, Vanguard’s CEO

Barry Ritholtz

That means a low hurdle rate. So we’re probably a lot more patient, but at the same time, you know, highly educated in the questions we ask. If you think about the fact that we’re client-owned, so we’re delivering as close to at costs as possible. So we do that. Like, we’re going to move on from them.