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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Stock market graph
This Bull Run Still Has Legs to Run
Stock markets can be volatile. You’ve been reminded of that over the last week. It’s led some to make sweeping statements about a market crash. Just keep a couple of things in mind when reading such analysis. One, the US economy remains strong.
RBA
The New Central Banking Era of Nothing
The latest minutes release from the RBA was so uneventful that the XJO dropped about seven points in the aftermath. And that’s on a day in which investors were dumping stocks. The RBA is a little too upbeat about economic conditions at present. Things aren’t rosy. And, in my view, it’s unlikely we’ll see rates rise this year.
interest rates could go lower
Get Ready for Even Lower Interest Rates
National Australia Bank has a consensus view that the RBA will start increasing the cash rate around August. But there’s a problem with that line of thinking. Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about.
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.
market in depression stage
What Next for This Manic-Depressive Market?
Has the market developed a resistance to the Fed’s drugs? How low will interest rates need to go and how much money will need to be printed to prevent a spiral into depression? The numbers are unknown. But it’s not unreasonable to suggest that it’ll need to be much, much more than the last (and unprecedented) dose.
US economy crash
How the Fake Boom Ends
If the authorities want to increase the supply of money, the only kind of money supply they can increase is the fake kind. Real money must be earned; like wealth, it cannot be printed.
bitcoin futures
Could Bitcoin Futures Crash the Price?
Bitcoin futures started trading yesterday morning on an exchange run by Cboe Global Markets Inc. The larger CME Group will launch its own bitcoin futures trading next week. How will this impact the market?
interest rates Australia
Why a Rise in Interest Rates Won’t Mean Much
It’s definitely possible that the US and even Australia could lift interest rates in the future. This would cause bond prices to drop and the supply of money to contract. But even if rates were to rise 1%, rates across the developed world would still be extremely low.