How can I protect myself from rising interest rates?
Rising interest rates negatively affect fixed income investments. When rates are rising, investors should avoid real estate, mid and long-term bonds, and utilities. Instead, investors should purchase very short-term bonds, stocks, and floating rate securities. If you have large sums of cash in the bank, you can now shop around for a higher yielding savings account. Rising interest rates have not been a surprise. The Federal Reserve has said it would raise interest rates ever since it cut rates 7 times in 2008 during the Great Recession. As expected, the Federal Reserve has raised interest rates once in 2018 and three (3) times in 2017.
ACap Asset Management, Inc. is a “Fee-Only” investment management firm headquartered in Los Angeles, CA specializing in helping doctors and healthcare professionals make sound financial decisions.
Contact ACap Asset Management at email@example.com or 818-272-8511.