There’s a new game in town… it happens once a month on a Tuesday.
It’s called… What will the RBA do next?
Yep, today is Tuesday and the game is live.
90% of economists reckon rates will be cut by 0.25%.
In fact, they think it’s a done deal and the market has factored it in.
What do I think?
If 90% of the economists think it’s going to happen, who am I to disagree?
But… And here’s the big “BUT”.
It might mean absolutely nothing to you if you’re an investor or a home owner with mortgage.
It doesn’t matter what the RBA does, it comes down to what the big four banks will do.
Those buggers probably won’t pass it on. Expect a bit of “bank bashing” to hit the front pages.
What it will mean is that the cash-rate will hit the GFC lows of 3% (Although mere mortals cannot borrow at that rate).
So, is it really THAT bad out there… so bad that we’re back to the GFC interest rate lows?
I’ll let you ponder that.
But here’s who will be affected for sure… Anyone who has money in the bank and living off the interest is going to hate today and every Tuesday that the RBA big-boys get together.
As interest rates come down and savings of retirees go down with it, I think what we’ll see is people starting to say to themselves, “I need to look for better places to invest.”
Hence, they’ll be looking at the stock market and real estate.
You know what I’ll be doing… Real estate is my favourite vehicle by a long shot.
…and low interest rates are perfect for a nut-case like me who loves real estate.
Nothing wrong with investing in shares, it’s just that I can’t play the games I want to play with the share market. But with real estate, it’s open slather.
One other thing for sure is that all of the bad news about why the RBA is lowering rates will be on the front page of the major newspapers across the country.
…the good news?
Page 24, left-hand side, less chance of people seeing it.
What you need to do is protect yourself from all of the silly noise out there and start making your own decision about where you want to be in 2013.
Start planning now. I don’t have to tell you what happened last time interest rates were this low.
Signed with Success,
P.S. I think great wealth will be made in the next 24 months and if you want to benefit, now is a great time to take investing really seriously and make it one of your top-3 priorities… Maybe even #1 for a while.