valuations? your best shot is insurance companies locking in 30yrs of losses? a decade of global disinflation followed by the insanity of today and you quibble about accepting a guaranteed modest loss? are you the mind police? OK forgive me where am i going with this?
first, what's that got to do with stock valuations?
second. credit markets have spent this century fretting that the future is going to prove more deflationary ie more risky. policymakers have failed to reverse this ideology. shame but hey the market in future outcomes is diverse and hotly disputed
Those with long tail liabilities are responding with torschlusspanik. They behave as though they would rather defer their imminent bankruptcy: better zero or modest neg yields today than waiting for the "inevitability" of worse neg rates that would accelerate their actual demise.
So far so rational and democratic. Like i have proposed, it's ultimately these soft intangibles like ideology and mindsets that matter. If you want to change the future change their behaviour - get them to worry about something else and provoke a powerful change for the better
