Another monetary policy committee meeting, another interest rate hike. The prime rate is now 11.75%, more than the average return delivered by the JSE over the past five years even on a total return basis .
Before you fetch the pitchforks and torches, I’m well aware that I just took a spot interest rate and compared it with an average return in a different asset class over a period of time. I’m not for a second suggesting that the average return over the past five years would’ve been better in a notice deposit than on the JSE, as interest rates weren’t high enough over the period in question...
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
THE FINANCE GHOST: Why investors get last bite at the cherryIf a company gets into trouble with debt as is now highly likely given rampant interest rates, you, the shareholder, are last in line for any returns
Source: FinancialMail - 🏆 20. / 63 Read more »