Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
Okay. Well it seems like the market is very focused on rate cuts in the US. Not all countries are cutting rates, are they?
David Nelson:
No. That’s a good point. And certainly, the big story the last several years has been basically increasing interest rates, trying to put a halt to inflation, and now the whole discussion is about when are the interest rate cuts going to take place? What’s interesting, as you said, is that most economies around the world, they are talking about cutting. Japan on the other hand, which is the third-largest economy in the world, is actually just increased interest rates. And the chart that I brought along today is basically a nice visual showing that this is looking at essentially a 10-year period of time, and the last 8 years in Japan, they’ve had negative interest rates. Yes. You heard me right, negative interest rates. So this is a real change as far as that’s come about there, and they’re now in positive rate territory.
Brandy Auterson-Hurst:
Okay. So how does this dynamic impact viewers’ portfolios?
David Nelson:
Well, usually we talk about central banks as far as, and when we bring that up, we’re talking about the US, but Japan, as I mentioned, being the third-largest economy in the world is very important partner as far as for us a trading partner. And if they’re going to be increasing interest rates, and many other countries around the world including the US are cutting interest rates, that could be a negative as far as for the dollar. And again, then that trickles down as far as what does it mean as far as to the markets, and the bond market, et cetera. We’ll have to keep a close eye on this, and we certainly will. And we’ll update appropriately going forward.
Brandy Auterson-Hurst:
All right, David. As always, thanks for joining us.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
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