- More than a quarter of the world’s bond market currently yields less than zero percent, including almost all of the German government’s debt.
- Economic theory would suggest that negative nominal yields imply deflation.
- Central banks may loosen monetary policy still further, pushing official rates even lower, in an attempt to stimulate economic growth. It is questionable how effective this might be.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.