5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

Read More

A Simple Plan:

Using Solar Power For The Best Benefits

Energy maybe derived from various sources including the sun that comes naturally. With it comes a huge amount of energy that just goes past without being consumed. With numerous appliances within the building, power needs continue to rise and these can conveniently be served by tapping the power from the sun. Having a solar panel is the best approach to help tap on this energy and put it into good use. Basic requirements in this respect include the solar panel and the converter and the solar panel that tap and convert the power into a usable solution.

The cost of electricity continues to grow by each day. Installation of the solar power on the opposite continues to reduce on cost. Installations of solar power therefore comes as the best choice to save on costs involved in powering the appliances in place. This helps in making savings on power consumption costs and effectively leads to savings on the cost of running the household.

One of the greatest global concerns comes from the increasing global warming. This has been attributed to among other things the majority of power sources available that emit carbon into the air. Solar power has been one of the choices offered as alternatives that come with no risk of carbon emissions that affect the environment in a negative way. Embracing this solution therefore works in a great way to help conserve the environment for better living.

Production of solar power is not limited for any commercial or domestic establishment. In such way, it means the establishments have the choice to produce more power that the prevalent needs and in such way have surplus of the same. The excess energy produced through the solar energy installation offers with power that can be sold to power distribution companies. The property owner therefore stands to gain financially from the sale of the excess power produced.

Taste and preferences in modern times are a major concern in modern building trends embraced by commercial and residential property owners. The available range of solar panels to use for this purpose come in a range that covers this aspect. Manufacturers in this regard offer with a range of choices that seek to meet this need. With this option, the need for new roofing does not arise in the process of installing the new solar panels. Installation of the panels may also take place within the patio and offer with energy resources.

Every building continually increases its powering needs. All the prevalent needs can be served with the solar power tapped within the compound. It brings long numerous benefits both to the user and the environment. Of importance is to ensure the select choice comes in the right quality and further seek for a reliable service provider for the installation.

The 10 Most Unanswered Questions about

4 Lessons Learned:

Read More