Rates to rise 8 times! Good or bad for stocks?

Founder and Publisher of the Switzer Super Report
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Former RBA director and former banking chief economist, John Edwards, reportedly said interest rates could rise eight times in two years. This has spread fear into the hearts and wallets of those over-borrowed types with home loans but retirees, who love the security of term deposits, would have to be icing up the champagne bottles for 2019!

The best one-year term rate in Australia right now is 2.75% at Bank Australia, and, if we saw the cash rate rise by 2% in two years, a rate of 4.75% could start attracting money out of the stock market. It could be a precursor to a big market shake out but it would imply that for the next two years, the stock market could go gangbusters.

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