Have Interest Rates Bottomed

Flat or Sideways??

What a week it has been. The stock market has been rallying to new yearly highs, property has been showing small however very significant growth, consumer spending is still moving along and business confidence is restoring.

Is this optimism slightly ahead of time or has the global credit crisis been over exaggerated?(mostly by the media!!) We have been in a lull for over eighteen months now and many are saying the bottom has been reached.

The stock market has had high growth for over 3 months.

Australian Reserve Bank Governor sent markets into a spin last week saying the interest rates had bottomed. The immediate effect was reflected on the strength of the Australian dollar, which surged to 2009 highs of 83.21 US cents. This week at their monthly meeting they left rates unchanged.

Now is a critical time for those on floating interest rates and those about to acquire a floating interest rate loan. Interest rates are heading in one direction in the near term-up.

Risk management has now become a priority even though many may not realize it.

Being on the wrong side of sudden interest rate rises can be devastating.

On the flip side though there will be bargins appearing as investors and homeowners need to offload their property.  Motivated vendors are usually time sensitive more than price so negotiating can prove to be fruitful. Having your finance organized to opportunitize in this period would also be wise.

The doom and gloom may be evident in the media so they can keep newspaper sales strong however with the markets signaling a turning point, the timing is very good for increasing exposure for some willing to ride the next upswing how long or short it may be!

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