Negative Interest Rates Coming?

Discussion in 'Retirement Planning Forum' started by Justin Bilyj, Aug 28, 2015.

  1. Justin Bilyj
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    Justin Bilyj Well-Known Member

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    Its not abpossibility its inevitable. Larry Summers came out against the 100 bill, they cant put NIRP into action if people can sinply pull out their money and earn 0%. This means cash will soon be abolished. I recommend locking in guaranteed interest rates in a IUL or IA for retirres going forward.
     
  2. GalvIns
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    GalvIns Well-Known Member

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    You think it'll just be completely removed from the general economy? What happens when production and the economy picks up steam again? I can't imagine U.S. Monetary policy changing that much.
     
  3. Rick Deckard
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    Rick Deckard Well-Known Member

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    Dow Jones heading to 20,000

    Employment is at Full Capacity(what a joke)

    Home prices are starting to venture back to where they were prior to the crash

    Interest rates are on the rise my friends, it's true. You are not going to get 3% loans on 30 year terms any more.

    4-5% in the coming year, maybe 5-6% over the next 24 months IMO, maybe that is a little optimistic.
     
  4. Justin Bilyj
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    Justin Bilyj Well-Known Member

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    Rising interest rates with a rising dollar will kill EM, decimating the profit of the largest corporations, who are only being held up by stock buy back programs which will be even more hampered with rising rates.
    Combine that with Trump's infrastructure plan and avoidance of paying way more on our debt eclipsing our gdp, trust me, rates are going negative...
     
  5. VolAgent
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    VolAgent Well-Known Member

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    An optimist only dies once.
     
  6. Rick Deckard
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    Rick Deckard Well-Known Member

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    Gold is down about 30% over the last 5 years, Silver close to 50%, not sure what the angle is here but right now stocks and RE are going to be the bread and butter for the next few years.

    Gold spiked when the market bottomed out under Obama and then from that low point we are now approaching 20,000 on the horizon.

    It's fun to speculate but negative interest rates are a little much. I believe the rate charged between banks to each other might have hovered around 0-1% the last few years but expect retail Home Interest Rates to start moving up, they already have. About 3/8 of a point across the board on 30 year fixed loans.

    I'm not trying to argue with you, just pointing out there are other ways to read these numbers, depends on your POV. You seem like a guy where the glass is half empty. Sometimes I am the same guy on different issues.
     
  7. DHK
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    DHK Well-Known Member

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    I'm not an economist by any means. It's my greatest professional weakness. I stick to general financial strategies, not stock market predictions.

    [​IMG]

    I will say that because of that, and how most people feel about investment risk & volatility (see FINRA's own US Financial Capability Study on page 16), and knowing how general demographics and wealth spending have been (I try to reference Harry Dent's research)... I'm still not confident in the stock market for 100% of a retiree's retirement savings. The economic collapse of 2008 took about 4-5 years to recover in the stock market... and retirees taking income from deflated portfolios would have PERMANENT and unrecoverable losses.

    I prefer fixed indexed annuities with lifetime income benefit riders... and I'm considering adding tactical asset management to help manage the downside risks of portfolios. As Curtis Cloke would say, "buy income and invest the difference."

     
    Last edited by a moderator: Oct 10, 2017
  8. scagnt83
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    scagnt83 Well-Known Member

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    By many estimates 40% of market growth over the past 6 years is due to buybacks which are facilitated by ridiculously low rates they are able to finance it all at.

    Its the everything bubble. Courtesy of Bernanke, Yellen, and Obama. (notice how Yellen was a huge hawk before Obama appointed her as president manipulator)
     
  9. GalvIns
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    GalvIns Well-Known Member

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    You have any sources? I haven't seen that statistic before.
     
  10. Justin Bilyj
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    Justin Bilyj Well-Known Member

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