David McWilliams You're right to be worried -- cra |
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aV3iU4sJ2f ![]() Senior Member ![]() Joined: 13 January 2014 Location: Maine Status: Offline Points: 775 |
![]() ![]() ![]() ![]() ![]() Posted: 29 April 2014 at 03:06 |
So the fund manager will have to put the saver's money in the stock market because if interest rates are low, then stock prices should be rising because (a) the general economy should be improving and (b) the interest rate on an individual company's debts and future debts is lower so that the company is benefitting. Powered by Goldvk Forum ,the perfessional game raiders forum,including game raides,instance,Game Gold(wow gold), equipment, pvp, quests, etc.
But the problem is that the interest rate is low because the economies all around the world are labouring. When the credit binge was in full swing, everything looked good on the outside. Bank shares and property was rising in value, turning savings into what looked like wealth. As long as the merry go round didn't stop, pensions looked gloriously bountiful. Find cheapestwow goldnew from us Now the opposite is the case. In an age of deleveraging and low inflation, the return to savings diminishes dramatically and the risk that a company or a country is carrying too much debt and will be overwhelmed by this legacy of debt means that there is risk everywhere, despite the low interest rates. In order for the fund manager to do well, he has to take risks, but he is not good at this and as he doesn't want to lose his job, your money goes nowhere in his hands. This is why the notion of giving your money to someone else to manage has to be something that you reassess as you look to the future. As the workers at Aer Lingus found out, to blindly give your savings to someone else makes him rich in fees and you poor in return. you canwow goldkaufen from online shop with safe transaction. This global backdrop doesn't look like it's going to change in the years ahead, so maybe it's time to think about managing your own savings. Otherwise, you may be working harder than you ever imagined for longer than you ever feared. David Mc Williams will teach a new economics course "Economic Insights with David mc Williams". It starts on October 22 and is enrolling now at www.davidmcwilliams.ie Download our Free iPhone App Now Download our iPad app now Download our Free Android App Now 0 Comments |
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