Generally, interest rates and the stock market have an inverse relationship. When interest rates rise, share prices fall. Bonds become more attractive. When interest rates rise, it can make borrowing money for a company more expensive, which means they have less money...
Asset allocation is how investors divide their portfolios among different assets that might include equities, fixed-income assets, and cash and its equivalents. Investors ordinarily aim to balance risks and rewards based on financial goals, risk tolerance, and the...
Investors recently got another painful lesson in the dangers of trying to time the market. With cash flooding into money-market funds, the S&P 500 shot up more than 20% from its low in October. The investor skittishness is understandable. While a default of US...
The Federal Reserve hiked interest rates seven times in 2022 – with more to come in 2023 – and the fed funds rate now sits at 4.25% – 4.50%. Fed Open Market Committee (FOMC) participants see the terminal rate hitting approximately 5.1% by mid-2023, a result of...
As a MoneyLetter reader, we trust you recognize the importance of spending time organizing and planning your financial future. To help enhance your planning acumen, this article is about how to apply some of our financial planning process to your life. We believe that...
If you are concerned about the volatility in the stock market, but at the same time are concerned about what effect rising interest rates will have on the bond market, maybe you are looking for alternatives. Money markets and even CDs may not have attractive crediting...
