Discover and read the best of Twitter Threads about #INTERESTRATE
Most recents (24)
Washington State enacted a 7% capital gains tax levied on annual profits in excess of $250,000, and made a *fortune*, $600m more than projected in the first year, despite a 25% drop in the stock market and blistering #InterestRate hikes:
theurbanist.org/2023/06/01/les…
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theurbanist.org/2023/06/01/les…
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If you'd like an essay-formatted version of this thread to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
pluralistic.net/2023/06/03/whe…
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pluralistic.net/2023/06/03/whe…
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Capital gains taxes are levied on "passive income" - money you get for owning stuff. The capital gains rate is *much* lower than the income tax rate - the rate you pay for *doing stuff*.
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#Bitcoin set to soar with projected target of $36,000 as technical breakout signals strong #rally amidst positive market outlook fueled by #stockbuybacks and #memecoins
🧵👇
Sub to our TG for the latest: t.me/matrixportupda…
🧵👇
Sub to our TG for the latest: t.me/matrixportupda…
1/10: #Bitcoin prices could be set to surge as the #cryptocurrency #trades within a narrowing triangle that is about to break to the upside, potentially projecting a move higher by around 6,100 points.
1/ #FoodForThought: Will the economic decisions of February 2023 shape India's future?
With #Budget2023 announcement, inflation numbers, and a potential US Fed rate hike due, February feels like a game of chess where each move can make or break the country's financial future.♟
With #Budget2023 announcement, inflation numbers, and a potential US Fed rate hike due, February feels like a game of chess where each move can make or break the country's financial future.♟
2/ The first Federal Reserve meeting of 2023 is coming up on February 1st, and it's set to be a big one.
Fed's hawkish tone hints at another #InterestRate hike. 🚀
Fed's hawkish tone hints at another #InterestRate hike. 🚀
3/ As the interest rates move, Consumer Price Index in #India is also projected to decline about 5% in the first quarter & more over the upcoming quarters of 2024. 📉
Wondering what history tells us about @federalreserve 🏦 tightening vs. loosening 💵cycles? If so, you're not alone! Here's a thread that breaks down the data 📊, #interestrates pause/pivot, & more... 🧵/👇🏼
#StockMarket #FederalReserve @LizAnnSonders
#StockMarket #FederalReserve @LizAnnSonders
@federalreserve #JeromePowell is the #LordCommanderoftheWall, the black suits stoic and regal, silently defending us from pure chaos, by building the highest #interestrate wall that we have ever seen in person before. What soundlessly waits is utterly terrifying.
As #inflation rises, a lot of things are becoming stickier and blazing hot like 🐉 🔥, endlessly surrounding all sectors. The world maybe burning silently; but, America is not #kingslanding
We are #WinterFell, it’s denizens are the protectors, the defenders, and we are the freest western land in the world, where you can enter a Snow experiencing #maxpain and absorbing the #fomc #75bbs hikes as if the 🐉 🔥 wasn’t burning at all.
Welcome to the Most Anticipated Recession in History–Part 2 -It's a #GlobalRecession & #LiquidityCrisis. Consumer perspective shaped by what’s going on in their own world despite politicos ignoring the chaos - by @TraderStef for @crushthestreet #Recession
crushthestreet.com/articles/break…
crushthestreet.com/articles/break…
It was evident. Interest rates would rise as #inflation started spiralling.
To ride through the rate hike cycle⬆️, #FloaterFunds were touted as an ideal #investment option.
But, so far, they haven’t done well.
A 🧵on why #FloatingRateFunds haven’t delivered yet.
To ride through the rate hike cycle⬆️, #FloaterFunds were touted as an ideal #investment option.
But, so far, they haven’t done well.
A 🧵on why #FloatingRateFunds haven’t delivered yet.
First, some basics.
When #InterestRates rise📈, bond #prices fall📉. Why? Investors would rather buy new papers at a higher rate than old ones with lower yields.
#FloaterFunds are not impacted by interest rate movement. There’s a simple explanation.👇
When #InterestRates rise📈, bond #prices fall📉. Why? Investors would rather buy new papers at a higher rate than old ones with lower yields.
#FloaterFunds are not impacted by interest rate movement. There’s a simple explanation.👇
As the #InterestRates rise, the yields on floating-rate bonds also increase.⬆️
So, #investors don’t need to sell them to buy new papers offering higher interest rates.
But the converse is true, too. So, when interest rates fall📉, #FloaterFunds become unattractive.
So, #investors don’t need to sell them to buy new papers offering higher interest rates.
But the converse is true, too. So, when interest rates fall📉, #FloaterFunds become unattractive.
It could be slowflation not #stagflation – and it’s better for the equity markets
businessinsider.in/stock-market/n…
By @jainrounak
businessinsider.in/stock-market/n…
By @jainrounak
With the pandemic & the #RussiaUkraineConflict, global economies have been affected by too many factors that have made central banks alter the course too many times, resulting in confusion over which way the economy will go and the shape of recovery.
#stagflation #RBI
#stagflation #RBI
Experts around the world have been worried about #recession and #stagflation — a combination of slow growth, inflation and unemployment. But now, analysts at UBS suggest things are looking up, stating that the global economy could be staring at ‘slowflation’ and not stagflation.
Numbers don’t lie, but they can be deceiving.
A good salesperson can sell you a poor product by using numbers🔢to his advantage.
And you really won’t notice unless you ask the right questions.
A 🧵 on how you can be fooled with data when buying #insurance policies.👇
A good salesperson can sell you a poor product by using numbers🔢to his advantage.
And you really won’t notice unless you ask the right questions.
A 🧵 on how you can be fooled with data when buying #insurance policies.👇
▪️ Number Game In #Annuity or #Pension Plans
The sales pitch goes like this:
If you invest Rs 10 lakh now, you will start getting around Rs 1 lakh a year after a decade--a 10% assured return on your #investment.
But there’s a catch.👇
The sales pitch goes like this:
If you invest Rs 10 lakh now, you will start getting around Rs 1 lakh a year after a decade--a 10% assured return on your #investment.
But there’s a catch.👇
It’s not 10% #returns. Here’s why.👇
For the first 10 years, there will be no payout. During this time, your #money will earn interest and grow.📈
Even if you invest in FD and earn a 5.5% #InterestRate , your money will grow to Rs 17 lakh in a decade.
For the first 10 years, there will be no payout. During this time, your #money will earn interest and grow.📈
Even if you invest in FD and earn a 5.5% #InterestRate , your money will grow to Rs 17 lakh in a decade.
The Reserve Bank of Australia has hiked the interest rate for the first time in a decade in response to soaring inflation. 7news.link/3FarZWP #7NEWS
The @RBAInfo has raised interest rates by 25 basis points, bringing the cash rate to 0.35%. It is the first time interest rates have been increased since November 2010. Both @ANZ_AU and @Westpac have predicted they're looking at 2% of increases by mid next year. #7NEWS
Australians with mortgages are bracing for increased loan repayments after the Reserve Bank pulled the trigger on higher interest rates. The RBA board upping its official rate by 25 basis points to 0.35 per cent., the first hike in more than a decade.
Lot of #AMCs come up with different ideas, themes, sectors.
These are demands from #Investors as they have done well in recent past.
AMCs are manufacturers & will offer what is in demand.
Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
These are demands from #Investors as they have done well in recent past.
AMCs are manufacturers & will offer what is in demand.
Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
What should investors choose and what should they ignore. A point by point guide on where and why to invest in certain #themes, #MarketCap bias, #Sectors, #AssetClasses etc.
What should be criteria for these selections and what should guide them to resist from Investing?
What should be criteria for these selections and what should guide them to resist from Investing?
Lets start with #Debt:
Keep enough money as 1 year of your expenses as #EmergencyFunds in #LiquidSchemes
You already have enough exposure to debt as:
1. #PPF
2. #TaxFreeBonds
3. #FDs
No need for separate debt allocation if you are investing thru #AssetAllocation (AA) or #DAAF
Keep enough money as 1 year of your expenses as #EmergencyFunds in #LiquidSchemes
You already have enough exposure to debt as:
1. #PPF
2. #TaxFreeBonds
3. #FDs
No need for separate debt allocation if you are investing thru #AssetAllocation (AA) or #DAAF
The fastest-growing developed economy in the West, the US, has just released #growth figures for Q3: 2% annualized (down from Q2 recovery of 6.7%).
[Reminder: growth<0 is #recession, low growth is #stagnation.]
It also released the corresponding #inflation of 5.7%.
#stagflation
[Reminder: growth<0 is #recession, low growth is #stagnation.]
It also released the corresponding #inflation of 5.7%.
#stagflation
Everything is temporary, depending on chosen timescale!
cnbc.com/2021/11/03/fed…
[#Fed] statement kept the word “transitory” to describe price increases that are running at a 30-year high, though it qualified the term somewhat by saying pressures are “expected to” be temporary.
cnbc.com/2021/11/03/fed…
[#Fed] statement kept the word “transitory” to describe price increases that are running at a 30-year high, though it qualified the term somewhat by saying pressures are “expected to” be temporary.
Today’s US data for Q3:
Unit labour costs (QoQ) is +8.3% (vs 1.1% in Q2).
Unit labour costs (QoQ) is +8.3% (vs 1.1% in Q2).
At yesterday’s #FOMC meeting, the Committee revealed more expected tightening and further steps toward #tapering #asset purchases than they had previously. We see these as steps in the right direction.
Yesterday’s @federalreserve statement and press conference suggest that the Committee believes progress has been made toward its goals, but that there’s still some room to go to hit the recently re-defined objective of maximum #employment.
Still, it’s now time to set up for the end of this long-running #EmergencyPolicy-focused movie.
Real interest rate offers an important clue for understanding China’s #macroeconomy now and beyond, according to CF40 report “Changes of Real Interest Rates and Combination of Fiscal and Monetary Policies”:
cf40.org.cn/Uploads/Pictur…
1/7
cf40.org.cn/Uploads/Pictur…
1/7
In 2000-2011, as #savings and #investments continue to boom in #China, the real #interestrate fell. The turning point arrived in 2011. After that until 2019, the savings rate and investment rate kept falling, and the real interest rate picked up. How to explain the change? ...2/7
The decline in the real interest rate in the first period was caused by the falling relative price of capital goods, deteriorated income distribution, longer life expectancy and lower dependency ratio...3/7
The sheer magnitude of the moves in many #economic #data points in recent months has overshadowed the nuances of those reports. For instance, the June @ism non-manufacturing index came in at 57.1 yesterday, a record 11.7-point gain and 7.1 points greater than expectations.
And when we look at the #ISM survey report of #commodity prices and what’s in short supply, there are many items that aren’t surprising: cleaning products, disinfectants and hand sanitizer are all up in #price and in short #supply.
Much more interesting, however, is the fact that #labor for #construction and subcontractors is back to being cited as in short #supply…
Recently,there's been huge outcry over #Cessation of 7.75% #RBI #taxablebonds,that were issued in Jan2018,with 7yr maturity
Outcry is unjustified
#Repo rate is 4% now,lowest in last 20 yrs,to benefit borrowers
Its only practical to see realignment
of lending rate&savings rate!
Outcry is unjustified
#Repo rate is 4% now,lowest in last 20 yrs,to benefit borrowers
Its only practical to see realignment
of lending rate&savings rate!
For those in tax bracket of 30%,return is 5.4%,while for those in lowest bracket of 10%,post-tax return is 6.97%
Those in 30% bracket but with 5Cr+ invested,get post tax return of 4.4%
#Cessation means no fresh subscribers;Existing investors dont need to redeem till maturity!
Those in 30% bracket but with 5Cr+ invested,get post tax return of 4.4%
#Cessation means no fresh subscribers;Existing investors dont need to redeem till maturity!
Those alleging,#SeniorCitizens will get adversely affected by #Cessation of these bonds,are wrong
Senior citizens can invest in #VayaVandanaYojana,with 10 yr lock-in,at 7.4%;This scheme was to expire on 31stMarch2020,but has been renewed for another 3yrs by @narendramodi gov👍
Senior citizens can invest in #VayaVandanaYojana,with 10 yr lock-in,at 7.4%;This scheme was to expire on 31stMarch2020,but has been renewed for another 3yrs by @narendramodi gov👍
Countries are extremely easing monetary policies, slashing interest rates and RRRs, to counteract the pandemic' blows on the financial market and real economies. #QE will inevitably expand the balance sheets of central banks, but it won't necessarily speed up total credit growth.
The massive easing of developed countries will spill over, especially to emerging markets: its income effect stabilizes global financial market and promotes economic pickup; but its relative price effect hampers capital flows and exports of emerging markets.
For now, the income effect is stronger in China than the relative price effect, which hasn't placed much upward pressure on RMB yet.
With a strong stimulus package and a contained virus, #China’s growth prospects for 2020 are not yet lost, said Yu Yongding via East Asia Forum:
eastasiaforum.org/2020/04/22/chi…
eastasiaforum.org/2020/04/22/chi…
In real terms, China’s 2019 #GDP was 19.7 trillion RMB in 2019 Q1 and 69.45 trillion RMB in the remaining 3 quarters. Official figures place China’s GDP at 18.4 trillion RMB in 2020 Q1.China’s GDP grew 6.1% in 2019.
Assuming that China maintains a real growth rate of 6% in the remaining 3 quarters of 2020, the annual growth rate will be about 3.2%. But the #COVID19’s unpredictability makes any economic forecasts problematic. China also has to be vigilant against a resurgence of the virus.
Zhang Bin, senior fellow of CF40, believes that specific measures to deal with the #novelcoronavirus does not require special responses from #aggregatepolicy. The measure shall target towards specific regions, industries and sectors.
lnkd.in/gqHwYXS
lnkd.in/gqHwYXS
Given weak economic growth and relatively low prices, it is necessary to relax aggregate economic policies, such as increasing #fiscalexpenditure and cutting #interestrate. With or without an #epidemic, these policies are worth considering.
There is no need to link these aggregate policies with the epidemic.
I am sure by this time we have all heard of the phenomenon known as #FinTech. Recently, I used the #GoogleTrends platform to ascertain the degree of search interest in the term "FinTech". The graphs depict a surge in interest from around 2014...
I took the #GoogleTrends analysis a bit further and determined where (geographically) interest in the search term #FinTech was most pronounced...
Let us talk about the #SouthAfricanReserveBank & what we can expect from their #MonetaryPolicy in 2020...
The #SouthAfricanReserveBank #SARB #MonetaryPolicyCommittee #MPC will conclude its first meeting of 2020 tomorrow 16th January 2020...The #KeyPolicyRate, the #RepoRate is currently 6.5% and #Inflation (#CPI inflation) is within the Bank's 3%-6% target range, at 3.6%...
The #SARB #MPC will consider #domestic #regional & #global #economic / #macroeconomic developments in deciding on its policy stance. The SARB is an inflation targeting #CentralBank whose mandate is to ensure #Price & #Financial #Stability necessary to support economic #Growth...
Recently, the global #interestrate has become the focus of market attention again, quoted CF40 member Peng Wensheng.
There are three perspectives for understanding low interest rates. The first is to analyze natural interest rates. Insufficient long-term demand will cause interest rates to fall.
The second is to analyze currency interest rates. The financial cycle leads to a downward trend in interest rates that is oriented towards stable economic cycle.
Question——who should be the main driving force of the process of marketization of #interestrate? Should it be the #centralbank or market itself as a result of factors like financial disintermediation? By CF40 member Wu Ge, 1/6 cf40.org.cn/uploads/201910…
There is a natural connection between interest rate liberalization and financial disintermediation. Recently, the central bank took the lead in releasing the new LPR (Loan Prime Rate) mechanism. 2/6
Previously, it also launched a mechanism in which points are added to the MLF (Medium-term Lending Facility) rate to improve transparency for quoting. 3/6
#US #InvertedYieldCurve & panic
On wed, #DowJones, #nasdaq & #SP500 saw more than 3% fall, highest in year so far
Reason? #10YearTreasuryYield < #2YearTreasuryYield, #spread being 0.04%, lowest since 2007
- Treasury notes are #USGovernment securities issued for 2, 3, 5 & 10 year
On wed, #DowJones, #nasdaq & #SP500 saw more than 3% fall, highest in year so far
Reason? #10YearTreasuryYield < #2YearTreasuryYield, #spread being 0.04%, lowest since 2007
- Treasury notes are #USGovernment securities issued for 2, 3, 5 & 10 year
Starting with basics first.
1. #InterestRate & #BondPrices have #InverseRelationship, meaning if interest rises bond prices fall & vice versa
1. #InterestRate & #BondPrices have #InverseRelationship, meaning if interest rises bond prices fall & vice versa
Why? eg. if currently #Coupon rate on a bond is 6% & int rate is also 6% & face value of bond is rs. 100. Meaning buyer of bond is willing to pay more or less complete face value of rs. 100
