Stock-markets often surprise, but the rebound of recent weeks has shocked many. From the pandemic panic low on March 23, the MSCI Index of global stocks is up over 25 per cent. Given the scale of economic and earnings contraction ahead, this seems unsustainable. Unsurprisingly, many have dismissed it as a temporary bounce which must give way to a renewed collapse. I disagree. Theoretically, there are at least two reasons for interest rates to be positive. First, the need to compensate creditors for postponing consumption i.e. the time value of money, and secondly, the need to compensate creditors for the…

Join The Currency

INTRODUCTORY OFFER: Full annual membership for just €200.

Don’t miss out on what is going on with our daily unique stories from our team of skilled journalists and insightful commentators.

Members of The Currency get full access to over 4,000 exclusive interviews, investigations, and analysis, plus over 460 podcasts.

Annual membership is just €200 for the first year, a saving of €100.

Or try The Currency for the first month for a special introductory rate of €5, a saving of €20.

Cancel at any time.

To become a member today click here.