However, our economy is not quite the same as the US one, who
have reported inflation up today for last month, but that news
may not be helpful to the market short-term.
I work for a privately owned manufacturing company whose turnover 15 years ago
was over 10m. Its lowest point was 3 years ago when it had dropped to under
1m. Since then it has started to see growth of about 20-25% per year, with the
current year showing a healthy advance order book for the first time in
years. What we are seing a lot more new investment and spending for the first time in years.
(We insist on a payment of 40% cash deposit with order and we are not
having any problems getting it!)
We think that after years of belt tighting and rationalisation, many companies
have money in the bank to spend. Its not borrowed money they are using but
past profits that have been put aside. Because of this higher interest rates
don't actually effect corporate profits, except in some companies it actually will increase
- as they are earning extra interest which will increase profitablility!
I think it might be the Over-borrowing melt down which brings everything down, i know of so many people and friends who have just borrowed more and more over the last few years, when will it stop. It can not be good in the long term?
I know I've borrowed a lot more (all interest free), but I also have just as much on
deposit as I have no intention of paying interest when I have to pay it back.
I thought I would have to last January, but they went and extended
the interest free period, when I started paying it back!
Poochy - now you know both Little Woman and I cannot be
classed as anything like 'pear-shaped'
Plus we don't invest in perishable food-stuffs beyond the fridge! ;>)
Seriously, you're right hun, but worry not.
:>)
My money is invested in an ING account paying 5% gross! I would put it into a Cash Isa
but as I need it to pay off the interest free borrowing on short notice I put
there for safe keeping.