Interest rates are much higher, which is partially offset by inflation (it’s real not nominal that matters) but not entirely. Today, US Treasuries have a +1.79% yield over 5 years in real terms, so higher than the −1.28% I mention in the article but still within the long-term range of −1% to +2% that I mention in the article. Importantly, that’s still below real GDP growth expectations, so over time the amount you can buy as a proportion of global wealth declines.
Interest rates are much higher, which is partially offset by inflation (it’s real not nominal that matters) but not entirely. Today, US Treasuries have a +1.79% yield over 5 years in real terms, so higher than the −1.28% I mention in the article but still within the long-term range of −1% to +2% that I mention in the article. Importantly, that’s still below real GDP growth expectations, so over time the amount you can buy as a proportion of global wealth declines.