This is an updated chart from our favorite buds Visual Capitalist…
Last year we spoke of the speed of interest rate increases a lot… given the unique pace at which rates increased AND the super low level of (zero is about as low as you can go) starting point … it became a shock to the financial system….
So in all likelihood, rates are near their top for the foreseeable future….what lies ahead?
We will have more on this in the coming Newsletter but rates 500 times higher than they were just a few quarters ago AND looking to stay higher… there are major implications..
Debt/Financing costs higher =
Better safe investment returns aka Fixed Income/Bonds
More costs to debtors (lower returns for those using debt because of higher costs)
End of companies requiring very low costs to make profits
Have a Great “Fastest Rate Increase Effect” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
Like this:
Like Loading...
Rates… Fastest Increase Review … Looking Forward for Effects … Newsletter Precursor …
This is an updated chart from our favorite buds Visual Capitalist…
Last year we spoke of the speed of interest rate increases a lot… given the unique pace at which rates increased AND the super low level of (zero is about as low as you can go) starting point … it became a shock to the financial system….
So in all likelihood, rates are near their top for the foreseeable future….what lies ahead?
We will have more on this in the coming Newsletter but rates 500 times higher than they were just a few quarters ago AND looking to stay higher… there are major implications..
Debt/Financing costs higher =
Better safe investment returns aka Fixed Income/Bonds
More costs to debtors (lower returns for those using debt because of higher costs)
End of companies requiring very low costs to make profits
Have a Great “Fastest Rate Increase Effect” Day!
John A. Kvale CFA, CFP
Share this:
Like this:
Leave a comment
Posted in Debt - Debt Management, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments
Tagged Fastest Ever, FOMC, Interest Rates, Rate, Rate Increase, Visual Capitalist