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Strategies & Market Trends : John Pitera's Market Laboratory

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John Pitera
sixty2nds
The Ox
To: John Pitera who wrote (18139)4/22/2016 9:31:05 AM
From: Chip McVickar3 Recommendations  Read Replies (1) of 33421
 
John -

>> Insurance companies can't payout dividends/claims and remain solvent without income around 4-5%
>> Pension funds can't survive for the same reasons - fully-funded or underfunded - it doesn't matter
>> Retires with savings accounts paying 0.05% can't survive either
>> 401Ks seeking security can't survive either... when invested in bond funds

>> Money in cash holding vehicles like a Fidelity or Vanguard Money Market Fund are slowly eating away principle based on the fees payed to these companies
>> If your bank charges you an account banking fee for staying with them... your cash savings can also be at risk even tied up in a 6 month or 1 year CD

Unwinding these low interest rates will not be pretty -

Hopefully Ms Yellen is up to the task - (I think she might be) - and able to take rates up for the USA...

I'm not sure if the ECU or the rest of the world will be so fortunate...???

Chip
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