Subscribe: Apple Podcasts | Google Podcasts | Spotify | Amazon Music | RadioPublic | Stitcher | RSS
While there have been a lot of headlines and criticism about inflation lately, so far interest rates, which tend to rise with inflation, have remained low. Rates on everything from savings accounts to mortgages continue to rebound near all-time lows.
The question is, how long can this last?
One school of thought, put forward by the Federal Reserve, is that inflationary pressures, which are now manifested in higher prices for everything from used cars to factory wages, are “transient” and will begin to recede as they go. that pandemic labor and supply chain shocks will subside.
Others think inflation is here to stay. This could have a negative impact on stocks and bonds. This is because the fate of stocks and bonds, as well as many other investments, is intimately tied to interest rates.
When rates are low, as they’ve been for a decade, businesses pay less to borrow and have more to spend, which boosts profits. When rates go up, the reverse happens: higher borrowing costs, lower profits, lower stock market profits.
Rising rates also mean that safer investments, like savings accounts and government bonds, will look more and more attractive compared to stocks, causing money to flow out of stocks, pushing down the prices.
What should an investor do? This is what “money!” from this week! podcast is on. We will explore specific investments that can not only survive, but also thrive in rising rate environments.
As usual, my co-host will be financial journalist Miranda Marquit. Newbie producer and investor Aaron Freeman listens and sometimes contributes.
Sit back, relax and listen to âMoney! Â»From this week Podcast:
Don’t listen to podcasts?
Essentially, a podcast is a radio show that you can listen to anywhere and anytime, either by downloading it to your smartphone or listening to it online. They are great for learning things and being entertained when you’re in the car, doing housework, jogging, or if you’re like me, ride a bike.
You can listen to our latest podcasts here or download them to your phone from any location including Apple, Spotify, RadioPublic, Stitcher, and RSS.
If you haven’t listened to our podcast yet, give it a try and then subscribe. You will be glad you did!
Do you want more information? Check out these resources:
Disclosure: The information you read here is always objective. However, we sometimes receive compensation for clicking on links in our stories.
I like the article