by Pete Veslick

Anyone who has money to invest is hurt by low interest rates. If you want to buy things on credit such as a car you might like the interest rates where they are now but people who have money sitting around are not happy. Right now the saying time is money does not really apply to bank cds and other investments where you make money by lending it to banks.

The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less …

On Thursday, July 3, the European Central Bank is expected to raise interest rates by 0.25%. That same day, economists expect the U.S. jobs number (”nonfarm payrolls”) to show a 60,000 reduction. Question: How should the two events affect the U.S. dollar’s standing against other currencies? Well, in theory, when a central bank raises interest rates, it makes that country’s assets more attractive to foreign investors. And since the country’s assets are denominated in that country’s currency, it also becomes “more attractive” – i.e. it gains. A weak jobs report speaks for itself. So, come Thursday, the USD should get decimated. Will it? Possibly, but… If you’ve traded forex for a while, you’ve seen many instances when the market would react “illogically” to the news. What’s stopping Thursday from being one of those days? Forex markets often don’t behave as “fundamentals” suggest they should. That’s because what determines the trend ...

By William Patalon III Executive Editor Money Morning/The Money Map Report The U.S. Federal Reserve will be in the spotlight again this week - and not because of those speaking engagements that seem to help whipsaw investor emotions. Tomorrow (Tuesday) and Wednesday, central bank Chairman Ben S. Bernanke will meet with his fellow policymakers on the interest-rate setting Federal Open Market Committee (FOMC). After one of the most aggressive rate-cutting campaigns in its history - a stretch that’s seen the Fed pare its benchmark Federal Funds rate from 5.25% in mid-September all the way down to 2.0% today - most experts believe the central bank’s next move will be to take interest rates higher to blunt inflation. But few of these Fed-watchers are willing to predict that the increase will be made now, or even in August, although the interest-rate-futures market is ...

Over the last several weeks, I’ve been steadily ratcheting up my warnings on the interest rate front. On April 25, I noted that the “Bond King” Bill Gross believed Treasuries were overvalued — and that he was aiming to profit from a decline in bond prices (and corresponding rise in yields). My message for you …
“Gross is betting on the same thing I’ve been warning you about for some time — that bond prices will fall and interest rates will rise. The market’s recent action suggests that’s just what we’re going to see.”
Then several days later, on May 9, I got even more explicit. I warned you right here that “The bond market is on the brink.” Specifically, I said …
“Bonds are right on the brink of a significant technical breakdown. An …

If you have, then you most probably have enough to last to pay for an “as-charged” private medical insurance plan (approved by Ministry of Health) til age 65. This is calculated on the following basis:-

a) that CPF interest rates for Medisave account remains about 4% p.a for the next few decades;
b) that premiums for the private medical insurance plans do not increase substantially as a result

Stockmasters, passing on this article about what to expect this week from the Fed, enjoy. Remember, whether the Fed cuts or not is somewhat meaningless at this point, it’s what they say that will turn the market up or down. If it looks like the economy is rebounding, then we’re off to the races.

Battling risky economic crosscurrents, the Federal Reserve is ready to bump down a key interest rate again to brace the wobbly economy. That rate cut could turn out to be the last one for a while as zooming energy and food prices heighten inflation concerns.

Fed Chairman Ben Bernanke and his colleagues are walking a tightrope. They are trying to shore up economic growth and at the same time they are mindful that they can’t let inflation get out of hand. It’s …