Many famous economists
Then there is the "there is no alternative" theory, aka TINA. It basically says that with interest rates so low, stocks are the only moneymaking game in town. Economist Paul Krugman has floated a version of this. And Shiller thinks it's plausible. "You have to put your money somewhere," he says.
refer to TINA to try to explain the rally in U.S. stock market since April 1 2020. Mohamed El-Erian doesn't appear to be a paid shill. He's the President of Queen's College, University of Cambridge and CEO of PIMCO from 2007-2014.
That’s because one of the driving forces behind the equity rally is the idea that “there is no alternative,” frequently referenced by its acronym, TINA. If bond yields move up more meaningfully, that might provide an attractive alternative to stocks.
Jeremy Siegel does too.
And with bond yields near record lows, there is no alternative to stocks, Siegel argued.
The Federal Reserve slashed interests to 0.1% on March 15 2020, but the aforementioned interest rates are historically pretty teeny. If TINA is true, wouldn't investors have reallocated to buying stocks way earlier than Apr 1 2020?