RE:Wisdomwithage - questionwhiteirish wrote: Hey Brit :
With the way things are going, I think you may want to sell your MPV shares and open a bank.
With NIRPs in Japan and much of Yurp, it can't be long until that contagion spreads to North America.
When it does, people will pay you to hold their money in a savings account. What can be bad about owning a bank then ? That's a dividend you can count on, eh ? Much better than MPV's questionable dividend.
So, if savers, globally, want to put their money in a bank (or a bond) that pays a negetive interest rate, how long do you think that system will last ?
It's just an honest question. No hostility is intended. I can't figure it out.
Good post WI, and gives me pause for a smile.
But frankly it's hard to beat MPV's return on our money. Slow and steady, with a few hiccups here and there as the tree is shaken a bit. Naturally most of us would like to see a dividend coming down the road (size of course is up for debate), but I doubt that will materialize until we pay off all or most of our portion of the construction loan.
However I'm pretty patient, and sure as h#ll won't leave my money in any bank. Like you I haven't been clear on what the term "negative interest rates" means. However I read an article recently posted on "Safe Haven" where the author defined it as the scenario where the Major Central Bank Rate is lower than the country's inflation rate. In other words if the CB Rate is .5% and inflation is running at 2%, we have in fact a negative interest rate of 1.5%. Whether that's an accurate definition, or just his opinion I don't know. It seems that the term "negative interest rate" has various interpretations. Even Investopedia seems unclear if you read their explanation. I'd like to hear other opinions.
If it were not for MPV going into production owning 49% of the largest diamond discovery in the world over the past 50 years, frankly my entire pf would be in PMs. My outlook is that both MPV and PMs will do exceptionally well in the coming 5 years, whereas fiat currencies, the S&P, DOW, and other major stock market indices will be in the tank.
And the state of the worlds' economies? Whew!!!! Well that's a discussion for another day. JMHO!
Cheers,
Brit