The rate on 13-week Treasury bills is 0%.
The average interest rate is close to 5% -- in any country at any time. This is what we should have. But we do not. Extreme levels of interest rates reflect serious problems.
0% interest rates reflect aggressive easing because of the problems we are still facing. We do not know them yet. But the markets do. This is why we have 0% interest rates.
The contrarian conclusion is that this is bullish news because we will continue to slosh in a sea of liquidity. And financial markets strive on liquidity.
There no doubt we are living in unique times. Act accordingly.
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
Ranked as Top Market Timer by Timer Digest
Disclaimer. No material here constitutes "investment advice" nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
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