Our GDP numbers are yet another example of ‘fake news’. All that ‘so-called’ economic growth is nothing more than a reflection of our nation’s willingness to go deeper into debt.
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…
The Reserve Bank of Australia (RBA) left interest rates unchanged once again last week. Rates have stayed stuck at 1.5% for two years now.
For years inflation has remained low. Now it looks like it is gaining some momentum. If inflation starts rising at a faster pace, the US Federal Reserve may raise rates quicker than expected…
When the RBA decides to move, what will it be? Will the next move be up, or down? The RBA insists the next one will be up. They don’t want to keep fuelling the housing…
This the final part of the Lessons Learned series. If you are a successful investor, you must pay tax. There are certain structures you can use to minimise tax, but ultimately the investment must be…
One of the things that really rubs mortgage holders the wrong way is interest rates. Or more to the point, how and when the banks change their rates. Earlier this week, Macquarie was first cab…
As you may remember, the US recently imposed steel and aluminium tariffs on trading partners Mexico, Canada and the European Union (EU).
The fact that Sydney and Melbourne’s property values are dropping will have a big impact on the Australian property market.
Not long ago, the RBA’s rate decision used to be widely anticipated and reported. Now it barely gets any fanfare.
Back in 2014, the European Central Bank (ECB) lowered interest rates close to zero. Real interest rates in savings accounts were negative. That is, if you kept money in the bank, you were losing money.
The Fed raised interest rates yesterday, as expected. The US interest rate is now higher than Australia’s, which is at 1.5%. And, as the economy heats up, the Fed may be looking at two more…
In 2014, I adapted the story There Was an Old Lady Who Swallowed a Fly, to describe the absurdity of the Fed’s actions in handling crises of their making.
You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.
Markets cannot completely collapse, whilst everyone is expecting one. Markets just don’t work like that. Markets can only collapse when everyone is fully invested and there’s only blue skies ahead.