Interests rates are going down in all of the Western World. In Australia it is only 0.75%, same in NZ, EU sitting towards 0%. US 2%. There is talk of QE in Australia and the rest of the Western economies. Australian Real Estate prices are going down despite such low interest rates. IMF is advocating "Negative Interest Rates" meaning you pay the banks to hold your money! In view of all this, my Questions are:
1- In your view, what do you see the future of "Interest Rates" in US, and what is the impact of a very low interest rate environment on Investment Bonds, US Dollar, Managed Funds like Vanguards, and other investment options?
2- Impact on Stock Markets ? Do you see a crash happening in US Stock markets like in 2008?
3- Major Banks Stability?
4- Least riskiest investment options (minus Real Estate)? You want to hold liquidity.
5- And lastly, What is the future looking like for Gold? From a year ago at Australian $53,000, the Gold is now at A$71,000. Has the Gold prices peaked or have they more to run?
Thanks.
1. low interest rates means cheap credit . the vast amount of cheap paper cash is sloshing around and artificially pumps stocks and real estate ( and causes inflation) . eventually , every thing corrects .
the US stocks are now at an all time high thanks to this cheap money and buy backs . many tech IPOs are failing anyway ( UBER, We work etc) while experts are calling for a long over due correction ( read , recesssion) ,
point is, you cannot boost an economy by cheap credit , but that's exactly what the US federal reserve is doing, its just printed 65bn USD as part of quantitive easing
This will NOT end well !
regarding future of interest rates, well , read trump's tweets, he's calling for negative interest rates,!
2 . US stocks are at an all time high and have an overall P/E of 30+ ( you spend 30 dollars to make 1 dollars ) , this implies extreme over buying and calls for a major correction ( read, recession ) .
this can happen next month, next six months or 2020 end
3. banks are always stable on paper ( they were all stable pre-2008 ) , yet when all hell broke loose, even lehman brothers was illiquid .
banks will always tell you they are liquid and A+ rated,
4. least riskiest investment = farm land ( canal land preferably . farmland in my native gujranwala is 3 lac per canal ) , silver , lots of 9mm and 7.62mm rounds if you have money left
5. gold price tgt for 2020 june =
2000 USD / oz
reason, massive stockpiling by russian and chinese central banks) , massive QE by US Fed , brexit, and overall global slowdown
I got loads of questions and stuff to discuss. Can we connect directly?
PM me plz
P
How safe do you think it is to purchase land in Bahria town or DHA because in Pakistan there is always a threat of people scamming you. All my relatives who make money in real estate have political connections with ppp guys. They even lick boots of the ppp politicians so I am assuming they request the politicians to back them if somebody scams them.
What do you think of investment in Gwadar?
1. DHA = very very safe
fauji danda and GHQ is behind DHA . it has credibility and transparency . there is no question of qabza , unthinkable ,.
2. bahria= very low prices, credibility issues . future is uncertain of bahria once malik riaz is no more /dead.
bahria has no corporate structure, no board of governors, nothing . its a scam and a racket that will fold eventually
3. gwadar = dead investment ( for now) . wait for DHA gwadar or some other fauji society
Just as a general question for all....is investing in crypto Halal??
Some scholars have said that it's akin to gambling??
I would personally like to invest and would like to know which cryptos are great for beginners but I'm not doing so because of religious reasons for now.
in islam, trading is encouraged , however, the following is NOT allowed .
1. interest
2. weight tampering ( naap tol me kami , milawat etc)
3. making promises and qasmain , lying
4. selling something without telling its faults
5. trading something NOT in your possession ( for eg, Futures trading, Option trading , leverage trading )
-----------
i have seen no authentic fatwas on crypto , yet