Summary
Interest rates have been low for so long, sometimes it does not seem possible higher rates could be right around the corner. Now is a good time to look at both your debt and investments to see how you would be impacted by higher interest rates.
Interest rate movements tend to move in cycles. In fact, there can be interest rate cycles within cycles. For example, the rate on a 10-year treasury note was over 15 percent in 1981. There have been shorter cycles of interest rate movements since 1981, however the trend has taken short-term interest rates near zero. To put this current cycle into perspective, most workers under the age of 40 have been working, and hopefully saving, while investing in a decreasing interest rate environment. If you are older than 40, you can probably remember the trauma of living in an economy with high and rising interest rates. I also suspect you remember, it is not pleasant.See the full content of this document
Extract
Interest Rate Strategy
I am going to go out on a limb to say, this is the bottom of this interest rate cycle. The question going forward is, how long will rates remain low, and wh...
See the full content of this document
Sponsored links
