Now this is the question we need to figure before planning strategic investments. 10 years of nearly 0% interest rate on
Now this is the question we need to figure before planning strategic investments.
10 years of nearly 0% interest rate on the USD made many people, especialy young people who joined the working circle after 2012, feel that 0% interest is the normal way of things.
But the elder of us remember other times with 5% and even a higher rate is surely possible.
But when Gispan raised rates from 1% in 2004 to 5% at 2006 economy slowed until 2008 crash.
We can't know what will happen but it sure looks smart to prepare for higher rates.
The good side is that inflation should eventually cool off.
In general that means lowering leverage which is exactlt what the Governments try to encourage.