XJO 0.50% 8,118.8 s&p/asx 200

Hello selmax,Are interest rates low?I mean they've been low in...

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    Hello selmax,

    Are interest rates low?

    I mean they've been low in Japan for donkeys but their stock market has stunk for decades.

    Interest rates are usually low in deflationary times (or low growth) and that means all asset classes will lose value.

    I am of the view that you should buy as rates are rising and sell as they are falling.

    The RBA uses rates to control growth/inflation. When they are at a low it usually means that is because growth is very weak.

    Australian rates have plenty of room to drop and that will only further weaken the $AUS which will result in a weaker economy and lower equity/property/commodity prices IMO.
 
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