Interest Rates

Whether it’s the rate you pay on your mortgage or business loan to the return on your money at call in the bank…the interest rate is the key variable in the economy.

In fact, it’s THE most important signal in the economy. Alas, if you think the economists at the RBA know what they’re doing when they fix the price of money, you’ll soon learn why the economy lurches from boom to bust.

Will interest rates rise?

A question you all may have..

Markets and Money will show you the threats and opportunities. For example, when interest rates fall, investors often go hunting for dividend stocks and bid their prices up. When interests rate rise, you don’t want to own companies with a lot of rate sensitive debt.

Discover if you should be in cash, stocks or bonds and why below…

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US fed stabbing investor in back
Will the Fed Stab Investors in the Back?
Warsh — who resigned as Fed governor in 2011 — says he’d like to get the Fed in position to fight the next downturn…by raising rates now. Instead of having investors’ backs…ready to buy assets when markets turn down…under Warsh, the Fed may become investors’ worst enemy.
US economy
The Greatest Mystery of the 21st Century
US economy is running at about one-half to one-third of the rate of growth during the 1960s and 1970s. And by our estimation, more than half the country has been in a depression for the entire 21st century.
australian financial markets
The Amnesia Market
Here’s what really sticks the boot in. Global debt is now US$70 trillion (AU$89 trillion) higher than it was 10 years ago. But hey, markets have short-term memories.
global financial crisis
Prepare For a Financial Crisis Even If It May Never Come
During both booms and busts, there is always a group of investors who believe things could get worse. It’s probably not the worst mentality to have. While you might not achieve the highest returns in booming years, you also don’t lose your pants in a financial crisis either.
price target
Dow 50,000? Why Not?!
Yes, reflation is coming. And yes, this is an economy that can’t tolerate higher inflation/interest rates. Then with no debt ceiling over Congress…and no hold-the-line president in the White House — the sky’s the limit. Dow 50,000! Why not?!
Australian interest rates
ANZ Economist Predicts Aussie Interest Rate Rise
For a while now, I’ve been convinced the Reserve Bank of Australia (RBA) wouldn’t increase interest rates any time soon. My reasoning is based on low income growth, households drowning in debt, and inflation showing little sign of hitting targets of 2–3%.
us economy interest rates
Will the Fed’s Stubbornness Cause a Collapse?
In 2017, the US Federal Reserve has lifted interest rates twice. Stronger employment is their argument to end their decade long bond buying rampage. However, while employment in the US continues to strengthen, inflation remains stubbornly low.
us federal reserve interest rates
Can the US Fed get out of this one?
The US Federal Reserve has left the interest rates unchanged at 1% to 1.25%. No surprise there. The thing is, there is something not quite right in the US economy, so the Fed is hesitant to make any sudden moves.
Australian interest rates
Profiting in a Low Interest Rate Environment
RBA released the minutes of their 5 September Monetary Policy Meeting. Various members of the RBA discussed topics ranging from employment to wage growth and housing activity, and what these could mean for interest rates going forward.