What’s behind rising equities risks and why negative rates won’t work

Why Equities Risks are Rising
and Negative Rates Won’t Work

By Blu Putnam, Chief Economist, CME Group 

Equities Risks Rising as Earnings Growth Stagnates

Video Highlights: 

  • Equities risks rise amid lackluster earnings growth
  • Companies increase debt in case of rate hike in 2016
  • September, October challenging months for equities

Negative Rates: Not Needed, Not Helpful

Highlights: 

  • Negative rates fail to foster growth, inflation
  • Companies benefit by raising debt, buying-back stocks
  • Fed unlikely to implement negative rates for growth
  • Governments might turn to more fiscal stimulus