Financial decisions in the euro zone: Everything depends on how long interest rates will remain low

Whether it is a question of: Investment or acquisition decisions in companies; Asset allocation decisions (equities, real estate, bonds, cash) by financial investors, in the euro zone, everything depends on the outlook for long-term interest rates in the zone. Will they remain very low for a long time (five years or more), in which case many assets (companies, equities, real estate) are still cheap and borrowing to invest is very efficient for a company, or will they rise quite rapidly, in which case all asset classes are already expensive and the use of debt leverage should be discouraged? Companies’ and investors’ expectations about the trajectory of long-term interest rates in the euro zone is therefore crucial.