Fear cannot perpetually lead investors to hold cash and bonds of the “safest” countries

In the recent period, investors have sold equities and corporate bonds in the United States and the euro zone and have switched to cash and public-sector bonds of the safest countries. The returns on these investments are therefore extremely low, especially in the euro zone. So i t is completely unlikely that this situation could be permanent and that investors will continue to buy assets providing practically zero returns. This should make us optimistic about equities and corporate bonds.