The different stages of investor rotation in response to zero interest rates

We look at the situation of the euro zone. We note several stages of investor rotation s ince interest rates on risk-free bonds became very low: Stage 1: rotation into risky assets (corporate bonds, peripheral bonds, bank bonds) and squeezing of the risk premia on these assets, with the exception of equities; Stage 2: r otation into illiquid assets (real estate, private equity, infrastructure) and squeezing of the illiquidity premia on these assets. This leaves Stage 3 : a rotation into equities.