Speculation on "When" The Market Will Bottom

I'd concede that. I definitely have been caught looking a shot or two ahead in a game of pool and consequentially forget to sink the first.

Though in my mind I have always perceived at those with great wealth are generally those that can roughly predict the future given present day trends and position themselves accordingly for maxium benefit.

I'll be interested to see the fixed rates at which banks will be offering in 12 - 18 months time, given that I don't remember the last time the cash rate was going to be 2 - 3%. You might find that banks refuse to put their fixed rates too low for fear of being caught short on the rebound.

Does anyone have any experience with the the fixed rates Australian bank offer in periods of very low cash rates (ie between 1 - 3%)?

I'm too young to even know how the system worked prior to the RBA, and a RBA cash rate of less than 4% is uncharted territory for them and the Australian banks of the last two decades.

 

Light at the end of the tunnel!!!

YOUR READING IT HERE FIRST ON INVESTED

Hi Chris,

Guess what!

The light at the tunnel is now in view! It is far far away though.

St George Bank dropped term deposit rates today, the 2 to 3 month rate is 4.90% as at 9th January 2009. That isn't the interesting bit...

The interesting bit is that the 12 month rate is 3.5% and the 24 month rate is 3.7%!

Yes if you blink or even see it...you will overlook it! Guaranteed that you will miss it but it is there! So you economists can say that we are no longer with an inverse yield curve but an inverse humpback.

We will see these longer term rates increase over the longer term (12 months plus) so your timing sounds about right for locking in a great low rate!

Cheers,

Dan

PS Before making an investment or borrowing decision speak to your FPA registered Financial Planner and lending specialist.