Opinion
The golden opportunity’ that investors are overlooking
Thanks to an inactive Reserve Bank, Australians have been blindsided by term deposit rates that are up near 5 per cent. They should instead be selling stocks and locking in long-term interest rates.
Tim HextFor the sixth time this century, it is likely the Reserve Bank of Australia will finish a year without having changed cash rates. But fortunately for active bond managers like me, 10-year government yields have remained volatile.
So, while the RBA has made up its mind that 4.35 per cent is the appropriate cash rate for the economy, the collective wisdom of long-term interest rate markets cannot make up its mind whether that level is appropriate for the medium to longer term.
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