How often have we heard “those who don’t learn from history are doomed to repeat it” and “the future is a repetition of the past”? I mention these quotations to highlight the similarities of an event that occurred nearly forty years ago and which now could again be possible.
Right now central banks around the world are taking unprecedented measures to keep interest rates pinned near zero. In fact, in many parts of the world interest rates are now negative!
We don’t see indications sharply higher interest rates are imminent. Still, we urge all readers to consider what could cause either short- or long-term interest rates to turn higher. Decisions involving debt need to consider not just the current situation, but also scenarios for what may lie ahead.
Below are a few things to think about when assuming interest rates will stay low for years and years.
As market analysts, our toolbox contains quite a few tools that give us insight into the markets and help us make recommendations. These include futures charts, cycles, crop reports, weather reports, world fundamentals, Canadian markets, input from local grain traders and seasonal odds.
One goal of the DePutter Market Advisory Service and the Ag-Alert service is to help our clients understand the price and profit cycles of agriculture. It can be valuable to recognize the signs and signals that identify the major highs and lows, because this can help you make business plans that fit the long-term swings in prices and profits.