The US Federal Reserve (Fed) is not done: After raising short-term interest rates in December 2015 for the first time in nearly a decade, the Fed is poised to continue on a course of gradual rate hikes.
This is no ordinary rate cycle. The Fed is “normalizing” rates from their extraordinarily low post-financial crisis levels. As a result, we expect rates to rise slowly, remaining below historical averages for some time. The persistent low-yield environment means balancing income needs and risk is as important and challenging as ever.
Still, rising rates are a sign of a strengthening, growing economy –for well-prepared investors, rising rates can signal opportunity.
With a simple strategy to soften the impact of rising rates on your bond portfolio, while seeking opportunity in well-positioned equity sectors, investors may potentially capture opportunity presented by rising rates. Learn more below.