Not exact matches
In the mad scramble for loan creation during the final phase of the Housing Bubble, the government created an
environment of essentially free money by allowing the big agencies, Fannie Mae and Freddie Mac (or Phony and Fraudie, as I often affectionately refer to them), to securitize loans to the bottom of the barrel risks with crazy terms
like no money down and incredibly
low «teaser»
interest rates.
Going as far back as 75 years, I can not recall a single instance of the stock market and economy crashing during a
low interest rate environment like we are
in now.
I've recently noticed a significant amount of mania -
like behavior
in which investors simply ignore valuations and it does feel
like we're
in the euphoric stage of the bull market
in which everyone can make money from stocks and the
low interest -
rate environment has helped perpetuate it.
But I do not
like bonds and feel they carry high risk without adequate reward
in today's
low interest rate environment.
He also takes a conservative approach to how much money one needs
in retirement, using a 4 % withdrawal assumption, which
in a
low interest -
rate and mid-to-high P / E
environment like today is only reasonable.
I have the majority of my investments
in index funds at Vanguard
in a taxable account, but don't
like bond funds paying next to nothing
in a rising
interest rate environment, though their
low correlation to stocks would be nice, return free risk though.
I've recently noticed a significant amount of mania -
like behavior
in which investors simply ignore valuations and it does feel
like we're
in the euphoric stage of the bull market
in which everyone can make money from stocks and the
low interest -
rate environment has helped perpetuate it.
In recent years, Canada's long - running
low interest rate environment has bolstered the popularity of real estate investing as people search for alternative investments that promise greater returns than they might otherwise be able to achieve through conventional investments
like stocks and bonds.
In our current
low interest rate environment that may not sound
like much but it has a dramatic effect over the longer term.