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The federal government has found a new way to punish savers — limit the interest rates troubled banks can offer to depositors.
So, despite some recent upswings in
CD rates, the larger trend continues to be a downward spiral. For bank investors, it’s like Shakespeare once famously described — death by a thousand cuts. Unfortunately, there’s no sign that the blade will cease slicing anytime soon.
Fidelity posted a great article analyzing the connection between low bank deposit interest rates and asset value increases in the stock market and commodities, most notably gold.
It’s been an interesting week in the commodities markets. Gold’s dramatic drop from a record peak of above $1,100 an ounce has had investors wondering whether the top is in, or whether it’s now time to buy before the next bull run ensues. Meanwhile, natural gas, one of the worst-performing commodities this year, has been shocked to life amid a North American cold snap.
