Low interest rates give investors tough time — analyst

As central banks around the world keep interest rates at record lows, investors are having a tough time choosing investment channels with the highest yield potential, an analyst of US-based Casey Research said Thursday. Investors are on the lookout for places to invest in, analyst Bud Conrad said, noting that some factors are being considered. For instance, Thailand “does not want any more investments," serving foreign investors notice that the country would impose a 15-percent tax on interest income from bonds purchased by overseas investors, said Conrad whose company advises clients on investing in energy, natural resources, and precious metals like gold and silver. Brazil’s Finance Minister also doubled the tax on bonds bought by foreign investors, to temper the real, Conrad added. China opted to print 47 percent more money than in the past 20 months to keep the yuan low, he said. “They’re debasing currencies. My point is that all these currencies are vulnerable if central banks want to. The race to the bottom is not that hard to win," he said. Efforts by various central banks around the world, the Bangko Sentral ng Pilipinas included, to keep interest rates low would support economic expansion, Conrad pointed out. Japan recently raised its interest rate to zero from 0.1 percent and more countries are expected to follow, heating up the race to the bottom of the interest rate game, he said. — JE/VS, GMANews.TV