Interest rates - staying low for a long time

Hello all, interested to hear the thoughts of the PC community about the impact of low rates for an extended period.

Some context, since the GFC interest rates have generally been trending in one direction - down. The covid crisis has really squashed them to the floor, pretty much every developed country in the world has central bank rates at 1% or lower, in many cases moving into the negatives.

On top of this, the language is such that the plan is to hold these at a low point for the foreseeable future. Reserve bank has explicitly said this, and overnight the fed have basically done the same, through advising they are less tightly holding to their 2% inflation Target. It's kind of inevitable regardless, given the levels of private and government debt around the world, rates can't go up that much, it would just crush too many borrowers.

My question is, how should low rates for years to come impact our investment decisions? In my mind, there are two key things that come out of this.

1. We can accept lower yields as the cost of money is so low and the immediate risk of this reversing seems very unlikely.
2. Once the Covid dust settle, maybe even before, this will keep driving asset price growth. There is just no point point sitting in cash on the sidelines.

I realise there are plenty of other things going on in the world that can impact the direction for property prices, but I just I think this is such a key factor that is unlikely to change any time soon.

Thoughts?

 

The Fed announced this week they aren't even thinking of raising rates until 2023.

1. Pay down debit.
2. wait about six months till the markets stop being so jittery
3. move out of property into EFTs. I'm sick of taxes and crappy new tax laws all the time up up up, new laws meaning I am a social housing provider not a business person, PMs that don't do their job, Tennants who think scams are great way to get money.
4. Unfold secret new smarter strategy to get ahead (so secret even I'm unsure of what I will do)

 

I think rates will be low for 10+ years to come. We are in a period of low inflation and low growth which will affect property prices - but they will still go up and down.