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Interest on savings is slowly creeping up on rental yields, looks like not many places u can hide and exceed the rate of inflation on your investment.
Until the interest rate on savings deposits at least meets or exceeds the rate of inflation, cash is still trash. Those who do not pay down debt or fixed loans at artificially low interest rates deserve no sympathy.
I tend to think the rise and fall of inflation will be as they are expecting, very fast.Until the interest rate on savings deposits at least meets or exceeds the rate of inflation, cash is still trash. Those who do not pay down debt or fixed loans at artificially low interest rates deserve no sympathy.
YEP , that is how i remember the '70's you were always chasing the increases hoping for break-evenInterest on savings is slowly creeping up on rental yields, looks like not many places u can hide and exceed the rate of inflation on your investment.
yes in most cases that is what happens , cash-strapped folks will come to work with pre-cut sandwiches ( made at home ) and stuff like that , and such buyer resistance can last for yearsI tend to think the rise and fall of inflation will be as they are expecting, very fast.
Talking to a neighbour who works in a pie shop, they were saying the owner had to put up the price of their takeaways, but once they hit a certain price people just stop or reduce the amount they buy.
At the moment $5 seems to be the magic number, if they go above that sales reduce, maybe that is only temporary but apparently that is what's happening ATM where she works.
There are quite a few income stocks paying dividend percentages in excess of inflation but of course this entails varying degrees of risk. As the "risk free" (using this term with caution) rate of return rises though, this will exert downward pressure on the share price of such companies.Interest on savings is slowly creeping up on rental yields, looks like not many places u can hide and exceed the rate of inflation on your investment.
There are quite a few income stocks paying dividend percentages in excess of inflation but of course this entails varying degrees of risk. As the "risk free" (using this term with caution) rate of return rises though, this will exert downward pressure on the share price of such companies.
Unclear if leveraged property or REIT investments will be a safe haven if forecast falls of up to 20% eventuate in major metro areas. But yes, most see term deposits and property as safe options.Term deposit or property would seem like the 2 only cushy safe options
Unclear if leveraged property or REIT investments will be a safe haven if forecast falls of up to 20% eventuate in major metro areas. But yes, most see term deposits and property as safe options.
the 'dividend theme ' make the BIG banks and TLS widely held ,I was making that comment more in relation to the thread, don't think there would be a big % of mum and dad investors willing to pour life savings into a decent stock generating 5-6% div returns.
Term deposit or property would seem like the 2 only cushy safe options
the 'dividend theme ' make the BIG banks and TLS widely held ,
and of course the patient mum & dad investor could have bought WOW for $30 back in 2015 ( and scored so bonus EDV on the journey ) or WES under $40 in 2015 scoring a bonus COL on the way or WES in 2018 ( without the COL spin-off for $31.25 )
HOWEVER to those small investors trying to park that money NOW ( at good div. returns ) will have to dig deep and research carefully to find robust companies that are capable of paying reliable returns .
trying to park your 'life-savings ' currently at good returns is very problematic as even term deposits don't offset official inflation
True, inflation erases any gains from deposit interest. But on the flip side without holding or raising cash we are not able to swoop on the bargains when the opportunities finally present.....I think at the moment nobody knows anything, term deposit you know you are getting 2% and giving back another 6%? to inflation or around there.
Is there such a creature?...but rather have your funds in a safe bank......
Probably not!! So under the matress or the back yard might be a better option!! In the great depression something like 5000 institutions went belly just in the USA alone....Is there such a creature?
aah ! the trillion dollar questionIs there such a creature?
Look what happened in Cyprus and Greece just 10 years ago......aah ! the trillion dollar question
will there be bail-ins this time ( instead of bail-outs )
i wonder what the current status of the government deposit guarantee is ?? ( they wouldn't need it if they were assured there would be no run on banks )
i remember it well , and took the opportunity to trim my interest-bearing securities ( ESPECIALLY in banks ) to absolutely trivial exposure ( and cross term deposits on my investment options list .Look what happened in Cyprus and Greece just 10 years ago......
the IMF , and World Bank ( and other international entities ) say they have plans and provisions for bail-ins , in fact that is what Basel III is about ( how much pain a bank can take before the bail-ins are needed )G'mint has denied bail-ins are possible under the legislation, but were pretty slippery about it. And their refusal of Senator Robert's simple amendment to clarify, probably tells us all we need to know....
Bastids!
It's still not time to be in interest bearing deposits yet. The worst in the markets IMO is a long way off. We have further upside in this current rally and god only knows how far up it carries, whatever the case it will be choppy and shake most pundits out. You know what reversals are like, they can be either very abrupt or we can get multiple re tests of former highs. I beleive the former in this case because a 40 year bull market does not reverse like that. Good news for tradersi remember it well , and took the opportunity to trim my interest-bearing securities ( ESPECIALLY in banks ) to absolutely trivial exposure ( and cross term deposits on my investment options list .
i have been ALMOST out of interest-bearing securities since the end of 2016 , previously they had been close to 20% ( including property assets )
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