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An article at InvestSmart web site debates that the period of cash rule is over. The rates have peaked recently and have already started on the downward path. There are still good rates with term deposits. BankWest still has an offer of 8.1%, which will probably match the share market rates in the coming period. Well, this is true if we take that a hard period is in front of us. Some believe the profitability will be very thin in the coming two years. In that regard, the current cash rates are worth locking in at the current levels. More and more people believe that central banks will need to ease the rates to allow the economy to recover.
Well, it's a transitional period. Now the bet is how long will the recovery take. Lock in the (currently high) cash rates or put the funds into share market and equities and hope for a quick recovery.
There are no silver bullets. The recommendations are simple - diversify; invest as much as you are comfortable with; invest into assets you are comfortable with. Don't over extend in any case. Everything else is gambling. To do that, one can simply go into a casino and try a few bets. Fortunes can be made overnight that way. :P And lost, too.
Nonetheless, the cycle is nearing its end. Finally.
An article at InvestSmart web site debates that the period of cash rule is over. The rates have peaked recently and have already started on the downward path. There are still good rates with term deposits. BankWest still has an offer of 8.1%, which will probably match the share market rates in the coming period. Well, this is true if we take that a hard period is in front of us. Some believe the profitability will be very thin in the coming two years. In that regard, the current cash rates are worth locking in at the current levels. More and more people believe that central banks will need to ease the rates to allow the economy to recover.
Well, it's a transitional period. Now the bet is how long will the recovery take. Lock in the (currently high) cash rates or put the funds into share market and equities and hope for a quick recovery.
There are no silver bullets. The recommendations are simple - diversify; invest as much as you are comfortable with; invest into assets you are comfortable with. Don't over extend in any case. Everything else is gambling. To do that, one can simply go into a casino and try a few bets. Fortunes can be made overnight that way. :P And lost, too.
Nonetheless, the cycle is nearing its end. Finally.
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