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.

But The Daily Reckoning 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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Pretty gypsy woman with her hands above her crystal ball predicting the future
Back to Our Future
Investors disappointed in the share market. Interest rates rising. Gold price, going from strength to strength. This was the market wrap for early 1980.
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The Long Transition…
When a government goes into debt, it’s due to a major economic shock. Then government spending increases due to welfare payments, stimulus measures etc.
bright picture of man with crossed fingers
The Big, Fat, Ugly Lie
Given the Fed’s appalling record in reading the economy correctly, the recent rate rise is a case of way too little, far too late.
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A Bull Market Remix
In one of the most long-awaited interest rate hikes in history, overnight, the US Federal Reserve bumped up the Fed funds rate by 25 basis points.