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Bonds Forbes Interest rates

Should You Buy Treasuries?

With interest rates going up, Americans are rushing into U.S. Treasuries at a record pace. Wondering if you should buy Treasury notes or bills in your portfolio? Here's how a Treasury strategy can add value to your investments in certain situations and some caveats to be aware of. (more…)

Kristin McKennaJune 15, 2022

Forbes Home buying Interest rates Mortgages

Considering an Adjustable Rate Mortgage (ARM) When Rates Rise

Interest rates are rising, and that's bad news for homebuyers. The national average rate on a 30-year fixed mortgage is now over 5%. After being in the 2% range for much of the Covid era, buyers are now facing a one-two punch: a red-hot housing market and rapidly rising rates.…

Kristin McKennaMay 16, 2022

Current events Forbes Interest rates

When Will Inflation Return to Normal? It Might Be a While.

After many years of stubbornly low inflation, we are now in an environment we haven't seen for 40 years. Prices are going up - fast. The Federal Reserve initially believed rising inflation would be transitory (i.e. fleeting) but has since changed their tune. Trying to get inflation to return to…

Kristin McKennaApril 25, 2022

Current events Interest rates

2 Reasons Taming Inflation Won’t Be Easy

Inflation is at 40-year highs. The Federal Reserve has started raising interest rates to cool the economy and tame inflation. But it won't be easy. Given the strength of household balance sheets and that the Fed is raising rates from zero, prepare for inflation to stick around. (more…)

Kristin McKennaApril 20, 2022

Bonds Interest rates

Does the Fed Funds Rate Affect Mortgage Rates and Interest on Cash Savings?

What does it mean for investors, homebuyers, and individuals with short-term cash deposits when the Federal Reserve raises interest rates? While rates don't move in lockstep with the Federal Funds rate, they do tend to take a similar path. The magnitude of moves will differ and in many cases, mortgage…

Kristin McKennaMarch 16, 2022

Bonds Diversification Interest rates Investing

Returns of Stocks and Bonds Before, During, and After Interest Rate Hikes (Charts)

The Federal Reserve is going to be raising interest rates (via the target Federal Funds rate). This is likely to happen next month. Rising interest rates affect the stock and bond market in different ways. Interest rates don't have a uniform impact on sectors within each broad asset class, either.…

Kristin McKennaFebruary 22, 2022

Asset Management Bonds Diversification Forbes Interest rates

Why is the Bond Market Down?

As a lifelong Patriots fan, I subscribe to the do your job mantra. In a portfolio, every asset class has a job to do. For bonds, it's to provide stability and income. And historically, it has done a good job. According to data from Schwab, since 1981, the Bloomberg Barclay's…

Kristin McKennaFebruary 21, 2022

Current events Diversification Forbes Interest rates

How Do Stocks Perform When Interest Rates Rise?

The Federal Reserve is planning to raise interest rates (the Federal Funds rate) earlier than expected to cool down the hot economy. The stock market is reacting swiftly: the Nasdaq 100 is in correction territory. What can investors expect from the stock market when interest rates rise? (more…)

Kristin McKennaFebruary 7, 2022

Current events Interest rates

Stocks Down, Yields Up: Looming Rate Hikes Bring Market Volatility

The Federal Reserve plans to raise interest rates more quickly than the market expected a couple of months ago. This is sending shock waves into equity markets as assets are repriced. Here are some drivers of recent market volatility and summary of what interest rates mean for the economic outlook.…

Kristin McKennaJanuary 23, 2022

Bonds Forbes Interest rates Investing

What Are Negative-Yielding Bonds? What Happens When Yields Go Negative

In uncertain markets, investors often seek fixed income for the relative safety that bonds provide versus riskier assets like equities. But with interest rates declining since the 80s, bond yields have come under pressure, even falling below zero in some markets. Led by Japan and Europe, about 27% of the…

Kristin McKennaFebruary 22, 2021

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