Thanks for the response. I appreciate it.
I only go by the scuttle-butt I run into here and other places, so I was thinking a rate reduction might be coming along.
I don’t want to see negative rates.
I’m not convinced these rates close to zero are a good idea either.
Individuals need to be able to realize some interest on their funds. It’s absurd for banks to get 14 to 29% on what you owe them, and pay out zero on what you loan them.
As for individuals getting a good return, I’ve been looking at REITs, some of which are paying 10%+ annual dividends. Finanical advisors say their stock prices may go down after interest rates rise, but this devaluation in REITs won’t happen for several years, when the rising rates reach their peak.
So I’m considering them for only a third of my portfolio for now.
We need inflation expectations to be higher to get the yield curve higher. Global economic capacity is overdeveloped, so very hard to create sustained price pressures.