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For fixed income investors, speculation is growing that the Brazilian interest rates are set to increase either today or next months' central bank meeting. if they are raised by 0.25%, the country will have the highest rate in the world. It is no wonder that the countries' currency is the best performer since January 2009.
We track all currency ETFs live here.
Here are the top 30 real (effective) rates (interest rate less inflation):
(please click to enlarge)
Now here are the worse 10 possible countries to invest money in:
Note the U.S. is in 8th place with a negative return of -2.35% (less fees!).
1 comment:
So... can I buy an income property in India for 500,000, with say $100,000 down, finance $400,000 at 3.25% - should be covered by the cash flow.
After five years we have inflation at 1.16^5 or 112%, lop off 10% for transaction, we have doubled the value of the 500,000 to 1,000,000 and basically made ten times the $100,000 investment.
When the real rate suxs, short it - buy an inflation protection asset.
Real Estate in the US is not such an asset (although it once was).
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