Talk of The Villages Florida - View Single Post - Poll - Low interest rates, are these a problem?
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Old 06-02-2015, 04:02 PM
manaboutown manaboutown is offline
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Extraordinarily low interest rates have really pushed the stock market and my portfolio has consequently grown accordingly. I placed some money in three self storage REITs when they bottomed out in 2009. Boy do I wish I had put in (much, much) more but at the time it felt too risky since the jury was still out on the outcome of the financial crisis. One went from less than 2.5 to over 24 where I recently sold most of it since I expect Yellen to shortly start raising interest rates.

I also re-fied some real estate properties with 3-1/2 % 30 year mortgages so at present all my debt is costing me far less than it did historically. I am therefore netting more on these assets.

Of course as interest rates go up bonds will go down. High dividend paying stocks will also probably decrease in price.
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