Table of Contents chevron_rightRising Rates chevron_rightShould You Fear Rising Rates? chevron_rightBond Market Facts vs. Rising-Rate Fictions chevron_rightRising Rates’ Silver Lining chevron_rightStocks Post Modest Gains chevron_rightHow Safe Is Cash? chevron_rightStay the Course Home Guides & Resources chevron_right Investing Special Report What Interest-Rate Hikes Really Mean for Your Portfolio: The Impact on Stocks, Bonds and Cash March 24, 2022 Table of Contents Rising Rates Should You Fear Rising Rates? Bond Market Facts vs. Rising-Rate Fictions Rising Rates’ Silver Lining Stocks Post Modest Gains How Safe Is Cash? Stay the Course Following a rapid economic recovery from the COVID-19 pandemic, the Federal Reserve is launching a new rate-hike cycle. It should come as little surprise, as the central bank’s policymakers have been heavily hinting at their plans for months. Complicating matters are the sanctions, uncertainty and strife surrounding the Russian invasion of Ukraine. The heightened market volatility we’ve seen as a result may lend credence to the Wall Street myth that every time the Fed raises the fed funds rate, bonds and stocks will sell off. However, our research into prior rising-rate cycles shows that following such “conventional” wisdom can lead investors down an unprofitable path. In our exclusive analysis, we cover: How rate hikes impact stocks, bonds and cash The fed funds rate and why it matters Economic conditions prior to the last seven rate-hike cycles compared to today The opportunity cost of trying to time a shift into cash Unlock Access to the Full Article
Home Guides & Resources chevron_right Investing Special Report What Interest-Rate Hikes Really Mean for Your Portfolio: The Impact on Stocks, Bonds and Cash March 24, 2022 Table of Contents Rising Rates Should You Fear Rising Rates? Bond Market Facts vs. Rising-Rate Fictions Rising Rates’ Silver Lining Stocks Post Modest Gains How Safe Is Cash? Stay the Course Following a rapid economic recovery from the COVID-19 pandemic, the Federal Reserve is launching a new rate-hike cycle. It should come as little surprise, as the central bank’s policymakers have been heavily hinting at their plans for months. Complicating matters are the sanctions, uncertainty and strife surrounding the Russian invasion of Ukraine. The heightened market volatility we’ve seen as a result may lend credence to the Wall Street myth that every time the Fed raises the fed funds rate, bonds and stocks will sell off. However, our research into prior rising-rate cycles shows that following such “conventional” wisdom can lead investors down an unprofitable path. In our exclusive analysis, we cover: How rate hikes impact stocks, bonds and cash The fed funds rate and why it matters Economic conditions prior to the last seven rate-hike cycles compared to today The opportunity cost of trying to time a shift into cash Unlock Access to the Full Article