5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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A Quick Guide for Getting the Best Engagement Rings

Being united as one is indeed the main purpose of having marriage and of course it is considered one of the most important event of any person’s life. A long process would surely be done to be able have these marriage for we all know that it is not that easy at all. One of the most important thing that you might need to consider before marriage is the fact that you need to get the best engagement rings. The trend for these engagement rings will be then further discuss in this article to help you get the best engagement rings.

So first of all, one of the most popular engagement rings that we could found nowadays is these colored gemstone rings. This have become quite a popular trend nowadays given the fact that some of us may want to have a colorful gems that will be in your rings. With the fact that many people including influential people uses these colored gemstones makes it pretty popular then everywhere.

Floral cut rings are indeed another trend in engagement ring that you could found nowadays and that is why you need to make sure that you consider getting these types of rings. This have become pretty popular that these type of rings literally does not boast on it outer appearance since it could be pretty simple. Simplicity is indeed a beauty for many people and that is why getting these floral cut types of rings may be suited to these types of people.

Getting one of these diamonds rings are indeed another important thing that you must not forget at all if we are talking about engagement rings. Being totally expensive is indeed common to these diamond rings and that it is why it is indeed pretty important for us. With the fact that you may be able to sell these diamond rings in the later time makes it one of the greatest choice for many people nowadays and besides it would be the most practical choice.

Vintage inspired rings is indeed another type of engagement rings that you may need to take note especially if you want to get the best engagement rings. Being pretty difficult to find and design is indeed the virtue of these vintage designed engagement rings and that is why many people want it to be unique with the others. With the fact that you could surely not be able to find any replacement for these rings makes it pretty expensive and that is why you need to make sure to get the right one.

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