Fund manager debunks stock-bubble theories

COPENHAGEN: Negative interest rates are unnaturally propping up the stock market and at some point the whole edifice will collapse. It’s an oft-repeated theory, but history suggests it might be wrong.

According to Kasper Lorenzen, the chief investment officer of pension fund PFA in Denmark, we’re essentially living through the negative supply shock that came with the oil crises of the 1970s, but in reverse. Thanks to cheaper imports and better technology, the supply shock is now positive and it’s going to continue shaping monetary policy far into the future, the theory goes.