The Fed’s uber-cheap money is keeping the stock market afloat, as investors will continue to find (relatively) high dividend yields tasty in light of the poor opportunity for yield elsewhere in the market.
And we’re reminded of this every time we see the Interactive Brokers ad on CNBC where they talk about how cheap the interest is on their margin accounts, and how you can use their “High Dividend Scanner” to find high yielding stocks on cheap borrowed money.
Here’s a web version of the ad that spells it out crystal clearly.
It literally says: “While the Fed is lending money at almost zero interest rates, why not take advantage of it through IB?”
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