The U.S. stock market is tanking, but Japan's Nikkei 225 is soaring a little more than a week after the country's central bank announced a move to negative interest rates.
That's great for stocks, but it can absolutely demolish a country's long-term economic health. Naturally, the U.S. Federal Reserve is all for them, and it likely won't be long until NIRP comes to the United States.
So, here are the best investments for negative interest rates.
The U.S. stock market is tanking, but Japan's Nikkei 225 is soaring a little more than a week after the country's central bank announced a move to negative interest rates.
That's great for stocks, but it can absolutely demolish a country's long-term economic health. Naturally, the U.S. Federal Reserve is all for them, and it likely won't be long until NIRP comes to the United States.
So, here are the best investments for negative interest rates.
The U.S. Federal Reserve is preparing for a two-day meeting on Sept. 16 and 17, and investors around the world are wondering "Will the Fed raise interest rates?"
The Fed has been adamant about raising interest rates for the first time since 2008 this year, and it looked to be almost certain the rate hike would occur in September.
When I see the market rally mindlessly - as it did on Friday, after the jobs report pushed the jobless rate down to 5.4%- I ask myself a set of questions like the following.
Do investors really think it's going to matter if the Fed raises interest rates by a quarter of a point in September instead of June? Do they really think it's normal that €3 trillion of European debt is yielding less than zero? The Swiss National Bank (Switzerland's Federal Reserve) owns $100 billion of stocks...Is that considered normal?
