Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By Daily Wealth
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

The World's Most Important Number Just Hit a Record Low

Tuesday, April 19, 2016 0:35

% of readers think this story is Fact. Add your two cents.

Nobody is talking about it… but the most important number in the world just hit a record low…

The implications are incredible.

When this number hits a record low – as it did a few weeks ago – crazy things should happen.

It’s not an understatement to say that MOST of the planet’s financial decisions START with this number.

Most important, with this number at record lows, central banks will do stupid things, which should cause asset prices to soar.

Let me explain…

The world’s most important number is the price of money.

Nearly every major long-term financial decision in the world is based on this number.

Should a company build another factory in Asia now? How much house can your family afford?

You simply can’t know the answer to either of these questions without knowing the price of money.

But what is the price of money? How do you measure it?

The simplest gauge of the price of money is the interest rate on long-term government bonds.

For decades, four countries have ruled the world of finance: the United States, Japan, the U.K., and Germany.

So the planet’s most important number when it comes to money – what we call the “SJUG Number” – is the average interest rate on the 10-year government bond in these four countries.

(“S-J-U-G” stands for the States, Japan, the U.K., and Germany. And yes, it’s like my last name to make it easy to remember. Pronounce it “shoog,” like in “sugar.”)

Like I said, whether you’re building a factory in Asia or deciding to buy a house… the interest rate you’ll pay is based on the long-term government bond rate. Every long-term interest rate in the world is based on the government rates in these countries.

In February, the worldwide price of money – the SJUG Number – hit a record low. Take a look:

In 1981, the SJUG Number was high at 12%. In the summer of 2008, before the financial crisis got into full swing, the SJUG Number was incredibly low – near 4%.

You’d think rates couldn’t go any lower. But a lot has changed in the last eight years… The SJUG Number has gone from incredibly low to shockingly low (below 1%).

Said another way, if you are willing to lend world governments your money for the next 10 years, you will earn less than 1% a year on your money.

The implications here are important…

It will drive a mass exodus of investors OUT of bonds that earn 1%. Folks have to do something else with their money.

The mass exodus of investors will move OUT of bonds that earn 1% and into… well… just about anything else!

Risky assets around the world should boom… U.S. stocks, emerging markets, you name it. With the SJUG Number near record lows, ALL of these could move dramatically higher.

Personally, I believe now is the time to move money into risky assets. The SJUG Number hit a record low in recent weeks. And that’s going to have a profound impact on asset prices.

Don’t miss the coming boom.

Good investing,

Steve

Editor’s note: Stansberry Research founder Porter Stansberry believes the growing trend of zero (or negative) interest rates is going to cause gold prices to ABSOLUTELY SOAR. And certain gold stocks could be worth up to 50 times their current price. But you don’t have much time to make your move. That’s why we urge you to check out our newest service, Stansberry Gold Investor, where you’ll learn exactly how to take advantage of the coming bull market in gold. Learn more here.

Source: http://www.stansberryresearch.com/dailywealth/3251/the-world-s-most-important-number-just-hit-a-record-low

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,605,522,167
Stories:	8,137,412