2 thoughts on “What negative interest rates mean for investors

  1. The negative interest rate in Europe affects a lot of people. Problem is most people are probably not aware of one import hing: the yield is lower than inflation. In Belgium, mainstream banks offer around 0,2pct of interest on saving. Inflation is 1,7 pct. People that have savings – I do – actually loose 1,5 pct pet year. The spooky thing: we do not see it!

    Investing it is the natural reaction. You pointed out that some stocks are indeed being pushed up well above a more average long term P/E.

    For me, the dilemma is here: you need some savings to cover emergencies and medium term spending. SO, we have no alternative now but to loose money.

    I am curious to see where the experiment will take us…

    Like

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