The answer is quite simple if look carefully at the above graph.
And the anwer is: when there is a recession or very slow economic growth.
One more lesson provided by history. Extreme levels of interest rates (close to 1% or above 8%) have been associated with serious economic and financial problems.
More on www.peterdag.com.
George Dagnino
aka Peter Dag
Editor, The Peter Dag Portfolio
Since 1977
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