Salaries vs Passive Income

[revhappy]

I notice, we are entering -ve interest rate and zero interest even in the US and rates are going to stay for a long time. We have seen this in Europe and Japan before.

In my view in the future, it would be easier for companies to just survive and pay salaries, but not generate a lot of profit. The central banks and the govt too will do stimulus to make sure people have jobs.

So I feel, it is much easier to someone to stay employed but it is going to be difficult to generate decent return on income from passive stock investment.

This is terrible for people who want to retire early. Do you guys also see this?

 

[BBCWatcher]

I notice, we are entering -ve interest rate and zero interest even in the US and rates are going to stay for a long time. We have seen this in Europe and Japan before.

OK. Then that'll mean the cost of capital will remain low for a while, making it easier and cheaper for businesses to invest in plant, equipment, R&D, etc.

In my view in the future, it would be easier for companies to just survive and pay salaries, but not generate a lot of profit. The central banks and the govt too will do stimulus to make sure people have jobs.

OK, so if this is true then it'll mean real labor costs remain subdued. Let's see: low capital costs and low labor costs? Hmmmm....

So I feel, it is much easier to someone to stay employed but it is going to be difficult to generate decent return on income from passive stock investment.

This is terrible for people who want to retire early. Do you guys also see this?

No.

 

[chrisloh65]

I think you are spot on in that statement if you are considering passive investment and blindly DCA into ETFs.

That is why I prefer buy low sell high to milk higher returns.

I notice, we are entering -ve interest rate and zero interest even in the US and rates are going to stay for a long time. We have seen this in Europe and Japan before.

In my view in the future, it would be easier for companies to just survive and pay salaries, but not generate a lot of profit. The central banks and the govt too will do stimulus to make sure people have jobs.

So I feel, it is much easier to someone to stay employed but it is going to be difficult to generate decent return on income from passive stock investment.

This is terrible for people who want to retire early. Do you guys also see this?