Today, across all major markets in the world, interest rates are 0% or negative. It is making it impossible for large institutional investors as well as retirees to generate much-needed income through fixed income investments.
Moreover, stocks have become extremely volatile and do not provide much more income. The average P/E of the S&P500 (SPY) is 30% above average even as we enter a sharp recession, and the dividend yield is a mere 1.7%, hardly providing good reward for the risk undertaken.
This environment creates a massive problem:
We desperately need income,