Investing and the 800-Pound Gorilla – Future Interest Rates

In late 2008 and early 2009 investors did not know how to invest to make money.  There appeared to be no good investing strategies, only a place to hide.  The lucky  folks hid in cash equivalents (cash) like T-bills and money market funds, or in savings products like CD’s and savings bonds.  Interest rates were at historial lows.  Hiding in cash was not a good way to make money, but at least you didn’t lose money.Picture a conference room full of investors trying to come up with investing strategies for how to invest to make money in such a financial environment.  The stock market was down 50%, bond yields were low, commodities prices were falling, and interest rates were at record lows.Now picture ignoring the 800-pound gorilla in the room, the possibility that interest rates could rise in the not-too-distant future.  In devising investing strategies and determining how to invest, interest rate trends can not be ignored.  For the past 40 years interest rates have affected stock prices, bond values, and rates in the money markets and at the bank.Consider these numbers for early 2009: federal funds rate near 0%, 1-year CD’s at about 1%, money market funds at .25%,… Read full this story

• The pound and UK stocks surge as Boris Johnson scores a big election win
• The rich have had enough of negative interest rates. Some are pulling cash out of Swiss banks
• Vaibhav Saxena: Legal improvements increase investment attraction
• Interest rates will stay low for 20 years, says Bank of England expert
• Prince Charles 'will fund Prince Harry and Meghan Markle’s new life out of his own investment income for a year' - but his friends warn the Sussexes this pot of cash is 'not inexhaustible'
• Tearful mother accuses The Priory of 'putting profits before patients' as hospital faces multi-million pound fine for health and safety breaches in death of her 14-year-old daughter
• Pound slides as slowing economy fuels rate cut expectations
• Prince Charles may use multi-million-pound legacy from King George VI to fund Prince Harry and Meghan Markle - as expert warns taxpayers could still foot the bill if he claims it on expenses
• Backlash could cost Xi Jinping's belt and road $800 billion, report says
• Siemens freezes new UK wind power investment following Brexit vote

Investing and the 800-Pound Gorilla - Future Interest Rates have 376 words, post on ezinearticles.com at March 24, 2009. This is cached page on Bach Thien. If you want remove this page, please contact us.