Former Federal Reserve Chairman Alan Greenspan was interviewed on CNBC on August 4, 2017. The 5 highlights of his comments were:
(1) Real long term interest rates in the U.S. are the lowest they have ever been going back to 1800.
(2) The only direction for interest rates is up, but no time frame was mentioned.
(3) Rising interest rates will exert downward pressure on stock prices.
(4) The most successful investment strategy is to buy and hold. However, human nature usually results in selling when prices decline.
(5) The next Federal Reserve Chair should be a good economics forecaster and be able to resist pressure from Congress.
Article by Dr. David Kass
