Today's
low interest rate environment means that investors can no longer get the same rate of return they've gotten accustomed to with products like government debt and high quality corporate bonds.
Given that the U.S. economy has been in a historically
low interest rate environment for the last several years and current rates have nowhere to go but up, variable interest rate loans are likely to increase significantly in cost in the coming years.
These periods have been shorter in duration (average half a year) and seen slightly smaller rate moves, a reflection of the low inflation and
low interest rate environment over the past 20 years.
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.
As the Fed raises rates to stave off inflation, it will be necessary to keep an eye on how well fairly new companies that were launched in an
abnormally low interest rate environment continue to perform.
Not only do Wall Street and investors look to faster growing stocks to lead the stock market higher during bull markets, but the current
low interest rate environment remains conducive to borrowing, which should allow high - growth stocks to outpace their competition.
Golding adds: «Even as analysts worry about the strength of the global economic recovery, there are concerns that the
record low interest rate environment is fuelling new housing bubbles».
Phrases with «low interest rate environment»