
We see several countries using negative interest rates as way
to improve their economy. When Central Banks cut their rates it makes other
investments look more appealing, and when they lower the rates so low that they
are charging to hold your money then they become really unappealing, Most
people flee Deposit products and seek bonds or dividend paying stocks when
banks no longer can help them grow their money. This in turn can improve the
economy of a country as companies have more money now to grow their business or
higher staff. We don’t have negative interest rates here in the United States
but many large industrial nations in the EU are faced with negative interest
rates.
If you have questions about how long of an investment should
you buy in falling interest rate environments, or other meaningful questions
please feel free to call us and ask for our help.
281-578-9989
SEP
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