Delete comment from: Captain Capitalism
Actually is the other way around I am afraid. Lower rates of return would ENCOURAGE investing in NEW businesses with the hope that a new business can generate more sells/revenue/profits/dividends than an old business. An old business may offer limited growth of their dividends because as businesses grow they have a harder time to expand, whereas a new business has much higher potential for growth. So bottom line, regardless of the interest rates, a new business can always be more appealing - since unlike an "old" business it offers a chance to capitalize on growth. This is where the profit ultimately comes from.
Oct 16, 2014, 7:48:29 PM