You’re correct about the underlying issues, but low interest rates and bond yields have accelerated things. They’ve prompted UHNWIs to make more speculative investments in the securities market, which they can afford to do without losing everything if the investment goes belly-up. Meanwhile, average investors with a lot less room for error feel the only way to beat inflation is to invest in those same risky securities, sometimes forgoing putting their money into bonds (because they also have a lot less room to diversify their meagre assets).
3 Likes
