Question
What do you think? What is your opinion? 1.How do you think interest rates affect the economy and markets? I believe that interest rates directly
What do you think? What is your opinion?
1.How do you think interest rates affect the economy and markets?
I believe that interest rates directly impact the amount of money spent. For example, if you have a credit card with a low interest rate, you may be more inclined to use that card to cover purchases knowing that the card issuer isnt going to be making a fortune in interest off of your purchases and ending monthly balance. Car loan rates empower buyers to purchase vehicles that may be just slightly out of their personal financial standing. 2. Where do you think interest rates are headed and why? Is this good or bad?
As of right now I dont see interest rates making a drastic change in either direction. This is a good sign for the overall market because it shows stability. 3. Do you think markets are currently undervalued, overvalued, or fairly valued? How about certain asset classes?
I believe that the market is fairly valued currently, share prices arent outrageous when compared to the company they represent. They only asset class I believe is overvalued is real estate and that is on a case by case basis. The fact that a 6,000 square foot home in any neighborhood in northwest Connecticut can be appraised at roughly $850,000 but you drive down in to Fairfield county and you can see prices upwards of $1.5 million for a home barely touching 2,000 square feet. The only reason behind the difference is location. You can also see the difference in price when comparing New England homes to anywhere in the south. 4. How does taxation and inflation work against your objective of wealth building?
Taxation and Inflation negatively impact any progression towards building wealth. Taxation does it by taking away your hard earned money for the many reasons and programs its used for. Inflation hinders growth of wealth by reducing value of the dollar. 5. Are there ways you can "defeat" the effects of inflation and taxation?
I dont believe there is a way to defeat taxation as the more money you make the more you will be taxed. As for inflation, you can find ways to make more money off of your investments as compared to the current rate of inflation.
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