A shakeout in financial markets triggered by central banks’ sudden move to abandon ultra-low interest rates has created a casualty money managers will not miss: TINA.
The acronym for There Is No Alternative to owning equities described how loose monetary policy since 2009 put stocks on steroids because yields on fixed income products such as government bonds became too low to bother with. TINA was the only trade in town.
But as high inflation has forced major central banks to increase the cost of money, TINA’s reign is over, leaving trillions of dollars worth of investments looking for a new home as investors adjust to a new, more varied, era.
