Irish Mortgage Brokers Blog

There is a growing body of work suggesting that many developed countries will cease to roar ahead at 3%+ growth rates in the future, that instead we are likely to see a growth rate of about 2% p.a. leading to a ’steady state’ economy.

If you look at the USA the inflation rate was only 1.9% over the decade from 2000-2010. If you strip out the 2008 recession effect it still only comes out at 2.6%. This could mean that Bernanke’s approach of effectively putting a floor on stock prices could lead to a revision irrespective of intentions.

Take a look at the picture below.

This could mean that in the future the standard P/E expectations could drop and a corresponding dividend yield increase become the natural premium or expectation of stock market investment, strangely; this will be getting back to the original reason people invested in stocks prior to the 20yr secular bull of the 80’s-late 90’s.

Susan Hayes - Options Trading Ireland, talking to Karl Deeter of Irish Mortgage Brokers from Irish Mortgage Brokers on Vimeo.

We were delighted to have Susan Hayes of Options Trading Ireland (and The Positive Economist) come by for a chat about options trading, what it is and how it works, in the video Susan uses her trademark ‘no nonsense’ approach to explain options in clear and concise English so that even the likes of Karl can understand it. Well worth watching, if you want to contact Susan you can reach her at either of her websites which are in the links above.