Equities Promise Reasonable Returns


    Unsustainably low interest rates interest rates are the biggest feature of capital markets today, says Tom Bradley, president of Steadyhand Investment Funds Inc. Speaking at its introductory seminar, he said these rates are unsustainable because when bonds finish their terms without getting significant real returns after inflation, there will be less purchasing power. Even if rates go up over the next five years, the capital value of bonds will go down. The stock market, on the other hands, should have reasonable returns, he said. Stocks are moving back to reasonable valuations and there are a “ton of stocks that a very attractively priced.” And while returns of six to eight per cent returns on equities don’t “sound sexy,” that is better than the zero to two per cent that bonds will return.