Important Disclaimer
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!Background
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.Email Notification
Join 867 other subscribersBlogroll
Clients Only!
Search Our Posts
Categories
Posts By Month
Making ¢ents out of the senseless Capital Markets
The Taylor Rule – Interest Rates should be at 2%
When the 07-09 crisis occurred, the Federal Open Market Committee (FOMC) noted that according to the Taylor Rule, rates should be negative. Since rates cannot generally be negative, they used this rule as a reason for the aggressive asset purchases to lower rates!
So now where should rates be?
Where Should Rates Be Now
From Economist-
The Taylor Rule is clearly saying 2% (We are currently still at zero)- Yes this will be a headwind for frothy equity markets and there may be pain in longer term fixed income instruments. Not withstanding these short-term headwinds, longer term, the economy may really prosper as rates FINALLY rise !
Have a Great Monday!
John A. Kvale CFA, CFP
http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225
Share this:
Like this:
Related