Once interest rate cuts start...
This is my complete soliloquy and fantasy.
Looking at the medium to long term, interest rates will definitely be cut, and along with that, the dollar depreciates. As yields on US bonds also fall, people seek products that can be expected to yield better than falling US bonds.
Now, where do the funds flowing out of bonds go? I think most of them will go to the stock market, but what kind of stocks are mainly bought?
What people are looking for is a product that is resistant to depreciation of the dollar and can be expected to yield a certain amount of yield.
Yes, those are high-dividend stocks in Japan. There is a possibility that funds flowing from the bond market will go into high-dividend stocks in Japan.
I've thought about it several times, but considering future trends, the most convincing thing is the popularity of high-dividend stocks.
In particular, I think high-dividend stocks of Japanese stocks that are strong against depreciation of the dollar will become popular
However, it is not a rapid rise, and I think it will slowly rise as interest rates are cut
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183525090 : I agree with you. However, people who expect yields from bonds may leave, but I feel that there are many people who expect an increase in the bond price itself due to a decline in yield. I think that's the kind of person who is buying debt ETFs right now, but what do you think?
But if interest rates fall, debt prices will rise, but it will also be a tailwind for stocks, right?
If that's the case, aren't stocks better than receivables?
トゥーナ OP 183525090 : I think the price itself will probably go up for both
As for the rate of increase, I think there is a high possibility that stocks will outperform bonds
I think risk assets are relatively more attractive in the interest rate cut phase, so
but it might be good to buy both