Future interest rates

[gwasser]

One of my more favoured personal investment gurus is Gordon Pape. I subscribe to his on-line IWB letter (Internet Wealth Builder). Often Gordon`s colums can later be found on GlobeInvestorGold.

Gordon gave this weekend his outlook on Interest Rates and also discusses RBCs outlook. RBC forecasts a prime rate of 5.5% for 2011. Gordon`s is predicting an interest rate hike as well but much more sedate.

As always, risk management is looking for possible scenarios, deciding which scenario is most likely (the one that guides your investment theme) and the least favorable scenarios against which you want to protect your portfolio.

So, I recommend you check out Gordon`s piece that is likely to appear in the coming days titled:
"INTEREST RATES HOLD THE KEY TO 2010/11" as part of your collection of potential interest scenarios.

Hope this helps.

 

[gwasser]

QUOTE (gwasser @ Jan 9 2010, 11:50 AM) .....

As always, risk management is looking for possible scenarios, deciding which scenario is most likely (the one that guides your investment theme) and the least favorable scenarios against which you want to protect your portfolio.

....
Hope this helps.

Here is another quote from IWB newsletter editor Tom Slee, (which he probably doesn`t mind to be reproduced) regarding my points on risk management:

"It`s January, which means that it`s time to do some forecasting. But before bringing out the old crystal ball, I would like to remind everybody that market projections are the weakest link in the investment process. They involve too many assumptions and there are all sorts of unknowns. Nevertheless, we have to have an opinion about the market in order to develop an investment policy. So, with the usual caveats, here goes. "

 

[Yev]

... the above article