using mcy as an example a 3 odd % return is far better than a 1% in term deposits most likely sometime next year. overseas experience from very low rates shows people will pay up for stocks when the return is higher and stable.
Printable View
True, but I would add that we should still exercise a cautious approach to purchasing shares depending where we are currently located in the economic cycle. I'm hearing more people stating they're going to buy in to something, anything, in the stock market, at any price, because interest rates are so low. That's a recipe for disaster, although not what you are advocating of course.
Ready for a 1.5% mortgage rate?
The Reserve Bank is preparing to lend fresh money to banks at negative interest rates from early next year, which would allow them to cut mortgage rates as low as 1.5 percent, Bernard Hickey reports
https://www.newsroom.co.nz/ready-for-a-15-mortgage-rate
Powell is on the side of the bulls’ — Cramer calls Fed chief’s speech ‘incredible’ for investors
https://www.cnbc.com/2020/08/27/jim-...investors.html
Federal Reserve Chair Jerome Powell unveiled a new approach to setting U.S. monetary policy, letting inflation and employment run higher in a shift that will likely keep interest rates low for years to come
https://www.bloomberg.com/news/artic...d=premium-asia
US futures roaring higher in after hours
welcome to the cuckoo's nest