Andrew Allentuck was kind enough to quote me in his October, 2014, piece It’s time to get used to low interest rates:
So, how long can the price of money hover in the low single digits?
“Yields at present are not sustainable, for real rates are below the replacement cost of capital,” says James Hymas, president of Hymas Investment Management Inc. in Toronto. “However, if we get into deflation, then the negative real interest rates prevailing now will turn positive. For now, investor sentiment does not show deflationary expectations, but there are many tripwires in the Middle East, Ukraine, and in the Baltic republics.”