What should the level of short-term interest rates be?Periods of stable economic growth with low inflation happened when short-term interest rates were greater than 1.4 times inflation.
With inflation at 2.1%, short-term interest rate should be at least 3%, up from the current 0.13%.
The price we are paying for this discrepancy is soaring commodities and steadily rising inflation.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked second best gold timer by Timer Digest
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 subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer.The content on this site is provided as general information only and should not be taken as 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.
No comments:
Post a Comment