Interest-Rate Hikes Impact Portfolios | Adviser Investments
Special Report

What Interest-Rate Hikes Really Mean for Your Portfolio: The Impact on Stocks, Bonds and Cash

March 24, 2022

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
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