Interest Rates
by Robert Bachynski on 01/15/14
The hot topic for 2014 is interest rates, will they go up or will they go down? If we all possessed a crystal ball, these questions would easily be answered and investing would be easy. Unfortunately, my crystal ball is broken, so any investment decisions must be based on facts. Let's look at some facts associated with interest rates before making any harsh decisions on their direction.
Fact #1: Interest rates have risen from approx 2.5% to 3% over the past few months
Fact #2: The US is still issuing 75 billion per month in QE
Fact #3: The Dow just had its best monetary gain since 1995
Fact #4: US GDP has risen from 0.1 to 4.1 in 2013
Based on these facts, we should leave any interest rate estimates to anyone who still owns a crystal ball, but all the facts accounted for 2014 will be full of surprises.
