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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. In a reflection of the times, there have been two developments.

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Transcript: Savita Subramanian

Barry Ritholtz

So it’s got this math angle where it, you know, it’s all numbers, but then there’s this behavioral angle and psychological angle where, you know, it’s, it’s kind of a fun problem to tackle. And so I went to business school, I decided to go to business school, get that formal education. That’s right.

Finance 57
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Transcript: Tim Buckley, Vanguard’s CEO

Barry Ritholtz

We’ve always been a virtual company, just used to be through the mail and 1-800 number when I joined. So that’s a number I hadn’t seen before. Number one, you put it back into the business. That means a low hurdle rate. And straight up, the number is huge. BUCKLEY: Yeah. We’re 99.97