It is a fact that U.S. stock prices are at their highest historical level. But for someone to decide whether to keep their shares in their portfolio in the new year, it will be the wrong strategy to look at how high their share prices can go. What matters to the investor is that the …
Tag: interest rates
The Inequality of Borrowing Cost Rates in the Eurozone
The European Central Bank (ECB) recently published data on the borrowing rates of households, businesses and the overall long-term borrowing costs respectively for both the Euro area and each of its member countries (Source: ECB, https://data.europa.eu/euodp/en/data/publisher/ecb). What continues to trouble us from the graphs below is the fact that a Eurozone of different speeds appears …
The low interest rates, their consequences & the returns of assets as an investment selection criterion
In EU member countries (e.g. Denmark, Germany) commercial banks are proceeding to mortgage loans with a negative lending rate. In other words, these banks grant discounted housing loans to borrowers and since the repayment of the mortgage loan not only will not be paid interest, but the borrower will repay capital in total less than …