DINNER conversations have changed quite a bit this year. Friends, who two years ago would not stop talking about hot stocks, coins and NFTs (non-fungible tokens), are now talking about the amazingly high “guaranteed” fixed deposit rates they are getting at their banks.
Indeed, fixed deposit rates are high – higher than they have been for a while. But should we park our money accordingly, just because rates are high?
Year to date, global equities are up 18 per cent (represented by the MSCI World Index in USD as at Nov 30). Those sitting in fixed deposits have been comfortable but have missed out, and history does not paint too different a picture.
When interest rates were around or higher...
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