Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Global Interest Rates Lower

Published 02/15/2016, 01:33 AM
Updated 05/14/2017, 06:45 AM

The hormones have overpowered them... the hormones of the economy known as interest rates.

Those men have destroyed any shot the little guy has at kicking back with his feet up. They’ve destroyed the old-school rules of making money.

Just look at what they’ve done to their own bond markets:

10-Y Gov Bonds Across the Globe

Janet, you’re hanging with the wrong crowd. They’re trying to bring you down.

Your fellow central banksters across the globe are pushing their rates lower... enticing you to do the same. They’re messing with powerful hormones.

In Europe, Mario Draghi has held the European Central Bank benchmark rate near zero for far longer than anybody before him ever dare. He’s trouble.

In Sweden, Stefan Ingves pushed the Riksbank’s key rate even further into negative territory this week. He’s the bad boy of monetary policy. More trouble.

And, be still my heart... the new kid in school, Haruhiko Kuroda, slammed global markets when he sent Japan’s key rate into negative territory. Stay away from him.

These suitors are dangerous, my dear. Nothing but trouble.

Let them go or you’re going to hurt us all. In fact, those closest to you are already seeing the pain.

Look at the damage that’s been done to the nation’s banks - the very folks you’re supposed to love the most - over just the last 90 days.

KBW Bank ETF, Deutsche Bank

The ever-popular PowerShares KBW Bank ETF (N:KBWB)) is down nearly 25%. But look at what your slick suitors in Europe have done to Deutsche Bank (DE:DBKGn) ( N:DB). This stalwart is down over 40%... in three months.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

There’s trouble brewing. We need to talk.

I hope I don’t have to tell you why these shares are falling, Janet. The “death of interest rates” is killing anything that makes money from money.

Banks... insurers... pension funds...

I’m not sure you care. You’ve got a nest egg worth over $5 million, Janet, and a nice pension from the University of California. Heck, even your stamp collection is more valuable than most American retirement accounts.

But you should care. All of this is already harming the average American.

As interest rates dies, the little guy has no hope.

He’s left wondering what to do.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.