Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Saturday, December 17, 2011

Why Are Interest Rates So Low (Part 2)

Yesterday we looked at the first short video of 7 that explains why interest rates are so low.  The effect comes from the global currency markets and, in my vie,  is an effect that hasn't been fully appreciated by investors - even very sophisticated investors.

Today's Khan Academy 14-minute video shows, in very basic terms, how freely varying exchange rates eliminate trade imbalances.  Notice especially, at the end, how prices in the countries change.

Again, this is leading to a fairly sophisticated understanding of the impact of controlling exchange rates and demonstrates that the economics investors need to understand can be presented without esoteric mathematics.

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