I never argue with the market. The world’s central banks last year decided that they had to raise rates – balance their books – which the US started last summer. The outcome was a crash in the stock market in December and we never have seen such a total reversal of central banks standing ever. As I put in a previous Oz Buzz, fear reigned, and rates now will likely be lower. In Europe the ECB announced it will NOT raise rates until next summer.

There were several other questions on interest rates and negative rates. Currently there are $11 TRILLION(!) dollars yielding negative interest rates in the world (probably 25% of all outstanding capital). Imagine: 25% of the world’s banks and institutions want you to deposit your money AND you pay for the privilege so that they can lend it out at a profit. That is not normal! In Germany that rate is now -0.3%.