Will Interest Rates stay extremely low for 5 Years?

Snooze

chucky wrote: »

lol - i make a typo and you use it as your post footer a year later... :eek:

Oh, a typo is it now?! :eek: Funny how your post stayed like that for a long time afterwards, even though you'd already seen my sig. What caused you to change your opinion, chucketh? Wasn't owt to do with the possibility of egg on face at a later date then, right?

Thrugelmir

HAMISH_MCTAVISH wrote: »

Kaletsky seems to think so....

I would read into his comments that it is unlikely that interest rates will remain low, and that growth may be an issue.

Martin Sorrell CEO of WPP was questioning the Treasurys growth forecasts last week. In fact he is suggesting that UK growth at best is going to be sluggish. He puts the UK and Europe in Division 3 of the growth stakes. China, Brazil and India in Division One. The USA and Russia in Division 2.

As others have questioned he wonders where the UK is going to generate growth from. As the lack of investment in more recent years will now be exposed.

chucky

Snooze wrote: »

Oh, a typo is it now?! :eek: Funny how your post stayed like that for a long time afterwards, even though you'd already seen my sig. What caused you to change your opinion, chucketh? Wasn't owt to do with the possibility of egg on face at a later date then, right?

because it doesn't bother me what you put there - you've had it in your footer for at least 6 months and it seems to fulfil you.... inadequate people are fulfilled quite easily...

Pobby

Serious question for you Chucky. Your remark regarding investments. I admit that a lot I hold is in cash. However I hold equities, corporate bonds and gilts. The only property is what I live in. Right now I see nothing that will return anything near 5% unless I want to be risky. At my age that`s not an option. Any pointers?

Oh and to add. I will be retiring in a few years ( might well work on longer ) so a tie in of 5 years would be about right.

Thrugelmir

Pobby wrote: »

Serious question for you Chucky. Your remark regarding investments. I admit that a lot I hold is in cash. However I hold equities, corporate bonds and gilts. The only property is what I live in. Right now I see nothing that will return anything near 5% unless I want to be risky. At my age that`s not an option. Any pointers?

Oh and to add. I will be retiring in a few years ( might well work on longer ) so a tie in of 5 years would be about right.

Do you use your full ISA allowance every year?

Without risk you can't expect reward unfortunately.

abaxas

HAMISH_MCTAVISH wrote: »

Well given the circumstances, it is now pretty clear the borrowers have been rewarded for their risk taking, and so have turned out to be prudent.

And it is the overly cautious savers who have been punished for their lack of courage, and turned out to be f eckless.

Reality becomes far clearer with hindsight.....

Right I'm off to rape some 18 year old and skin grannies alive.

chucky

Pobby wrote: »

Serious question for you Chucky. Your remark regarding investments. I admit that a lot I hold is in cash. However I hold equities, corporate bonds and gilts. The only property is what I live in. Right now I see nothing that will return anything near 5% unless I want to be risky. At my age that`s not an option. Any pointers?

Oh and to add. I will be retiring in a few years ( might well work on longer ) so a tie in of 5 years would be about right.

i would never ever recommend anyone which investments to select, i can only speak for myself.

i've tried to diverse my retirement planning through property and equities (through pensions - both stakeholder and SIPP and also using my full ISA allowance for equities).

all of the equities provide at least a 6% return some closer to 10% but as you know the share price is the risk - i've done well on this part, you couldn't really go wrong in the past year.

i'm not really sure i'd be the best person to speak to about this as there are some very knowledgeable people on the Savings and Investment board where you can pick up some very good information from on different options

SimbaSimon

I can only hope interest rates stay at extremely lows for a long time to come. Its great with the mortgage so low at the moment, lots of spare cash so time to overpay the mortgage and do a few extras around the house. I just hope its like Japan and stays low for years... mortgage will get paid off a lot quicker!

ninky_2

Generali wrote: »

If wages fail to rise to match increasing import prices then falling living standards rather than rising inflation results.

depends how you judge living standards though doesn't it. is your 'living standard' directly in proportion to your ability to buy lots of electrical goods and clothing.

imho most of us have more than enough in the way of electrical goods and clothing to last a lifetime. time poverty is more of an issue in the uk.

JayScottGreenspan

Kaletsky is an idiot. Here is the truth:

1) It would be nice if interest rates stayed low. (For the reaons he gives)

2) If interest rates pick up globally, or if inflation picks up, then we will have no choice but to raise interest rates. The alternative would basically destroy our economy. What yield would you want to buy a UK gilt if Kaletsky was at the helm? The interest on our debt would send us into a death spiral. Or we'd have to slash spending like Ireland have and like Greece have to.

Kaletsky seems to have:
a) noticed that low interest rates fuel economic growth,
b) decided everyone should set low interest rates,
and thinks he's solved everything.

No one raises interest rates just for a laugh. They do it becasue they have to.