Everything is a Search for Yield. Bitcoin Tech Talk #234

Bonds are returning very low, some even negative interest rates. Stocks have insanely high P/E ratios and low, if any dividends. Housing price to rent ratios are similarly high and generate comparatively little earnings for the cost. The macroeconomic conditions are such that there’s really no yield anywhere in the traditional markets.

How did we get here? Central banks all over the world have been printing money in a bid to reduce risk. Unfortunately this has had the side effect of reducing yield where these risks have been reduced. As a result, we’re seeing an unprecedented run on all sorts of alternative assets as people search for yield.