Will Rates Go Negative Next Year?

Mark Grant, Chief Global Strategist, Fixed Income for B. Riley Wealth Management wrote last week that he believes there will be HUGE pressure applied to the Fed next year by whatever party wins the elections in a week from today. Why? Currently, "adjusted for inflation, the sovereign debt of the world, with negative yields, now stands at approximately $31 trillion." Even Germany's 2 year "Note" is yielding <0.796%>. WOW!!! Mark believes that the Fed will face immense pressure to lower our short-term and mid-term borrowing rates below 0% next year.

This would be good news for us as a country as our borrowing costs would drop. However, it's a tragedy for seniors, pension funds, university endowments, and banks who rely on earning interest. This is yet another reason why I love investing in real estate.