Japan: It possible this backdrop could last indefinitely, according to Market Watch. Just consider Japan, the world third-largest economy, which has been mired in an economic slump for decades and now has "negative" interest rates. From time to time, they have risen modestly, only to eventually decline again, and today they are at the lowest level in more than three years. Translation: Borrowers earn nothing and also pay the bank interest to safeguard their money. If you fret that you might be on the verge of doing this, instead consider investing in a Modified Endowment Contract , a special type of cash-value life-insurance policy that offers excellent liquidity, as well as the chance to earn respectable interest until the economic backdrop improves. But if you think this scenario won't occur — a strong bet, given that the Federal Reserve doesn't either — you might want to think hard about how you're investing your hard-earned money at this juncture.. Locking yourself into today interest rates may be a foolish move.
(news.financializer.com). As
reported in the news.
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