Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate on what's actually happening to the companies in which you've invested
Peter LynchRead
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Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts and concentrate on what's actually happening to the companies in which you've invested
Is there anything as incredible as the love story of your own parents? Anything as hard to grasp as the fact that those two over-the-hill players, permanently on the disabled list, were once in the starting lineup? It's impossible to imagine my father, who in my experience was aroused mainly by the lowering of interest rates, suffering the acute, adolescent passions of the flesh.
If inflation-adjusted interest rates decline in a given country, its currency is likely to decline.
When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.
Eurobonds are absolutely wrong. In order to bring about common interest rates, you need similar competitiveness levels, similar budget situations. You don't get them by collectivizing debts.
See the investment world as an ocean and buy where you get the most value for your money. Right now the value is in non-callable bonds. Most bonds are callable so when they start going up in price, the debtor calls them away from you. But the non-callable bonds, especially those non-callable for 25-30 years, can go way up in price if interest rates go way down.
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