Euro interest rates hitting rock bottom

[Totoro]

Best rate from a stable bank I can get right now is 1.1% for 5 years. Savings accounts are at 0.5%. With inflation creeping up to 1.5% that's a guaranteed real loss baked in.

Nowhere to run with those numbers.

 

[Blue Collar Guy]

OP, is cash a big portion of your AA? If it is, then I feel your pain.

 

[Totoro]

>30% of total NW.

DM is still at >50%.

 

[Blue Collar Guy]

OK this is a bit of a problem.

 

[Fedup]

What does that mean for the Euro stock market?

 

[Totoro]

I don't know.

Companies strongly dependent on the Eurozone seem to be a bit less richly valued than the US market on some measures, but actually more on others. Overall on par I'd say. No clue on where they'll go next.

Real estate is going haywire in some hot cities too, but not as extreme as Australia or Singapore. Gross yields on rentals are 3% to 5% typically, sometimes down to 2% in Belgium.

Even high yield corporate bonds are around 2%.