Interest Rates

Why Bonds Will Be Among the Biggest Winners of 2023

Why Bonds Will Be Among the Biggest Winners of 2023

Along with a bear market for stocks, 2022 has, according to Morningstar, been the worst year ever for the bond market. Bond values have fallen up to 30% this year, putting a bigger dent in many retirement accounts that hold bond ETFs. Fortunately, in the current, higher interest rate world, you can invest safely in […]

Big Banks Just Gave You a 10%+ Yield Opportunity

Big Banks Just Gave You a 10%+ Yield Opportunity

A recent article on mortgage-backed securities (MBS) had me going, “huh?” The story covers MBSs being very popular when mortgage rates were less than 3%, but now with rates over 7%, large, institutional buyers are staying away. That’s one reason why mortgage rates are so high, despite MBSs in theory being more profitable today. That’s […]

Rates are Still Going to Rise – Here’s How to Prepare

Rates are Still Going to Rise – Here’s How to Prepare

If you think that last week’s inflation numbers would cause the Fed to pivot, I have a bridge conveniently located in lower Manhattan that offers easy access to Brooklyn available for immediate sale. You could make millions charging other people big bucks to use your new bridge and recoup your costs in no time. Yes, […]

Your Cash Could Be Earning You More Income

Your Cash Could Be Earning You More Income

With interest rates rising, your cash holdings could now earn you some interest income. Again, they could—but they may not be doing so. Many financial institutions are not passing along higher interest to customers holding cash. You should check to see how much your money earns, and if it’s a pittance, look at some alternatives. […]

The 2 Best Stocks for Even Higher Interest Rates

The 2 Best Stocks for Even Higher Interest Rates

After the inflation numbers came out last Tuesday, the Dow Jones Industrial Average (DJIA) futures dropped by 700 points in minutes—from above 200 points to the positive to more than 500 points down. The inflation rate of 8.3% was higher than the expected 8.1%. As one TV expert noted: “The future is messy.” Truer words […]

How to Invest for Rising Interest Rates

How to Invest for Rising Interest Rates

A few weeks ago, Federal Reserve Chairman Jerome Powell threw the stock markets under the bus with his comments about making stopping inflation the Fed’s top priority. If the central bank follows through, the result will have interest rates moving higher and staying higher for longer than stock market investors were expecting. That sent stocks […]

These 4 Stocks Will Profit from Rising Rates

These 4 Stocks Will Profit from Rising Rates

Last week the Federal Reserve hiked its benchmark interest rate by 0.75%. With inflation exploding higher, the Fed has, since February, pushed the rate from effectively zero percent to a current target of 2.25% to 2.50%. You may have heard or read that these higher rates are a stiff headwind for tech company growth and […]

An Easy and Safe Way to Earn 4%

An Easy and Safe Way to Earn 4%

As inflation has climbed to 40-year highs, interest rates have also ratcheted higher. For borrowers, higher rates are not a good deal, as they raise the costs of taking out loans. For investors, however, higher rates open up opportunities to invest safely and still earn a meaningful return. Today, let’s talk about an investment product […]