This article highlights one of the biggest disruptions in many years as the Federal Reserve is determined to raise interest rates to help combat inflation.

This is a complete “about face” from many years of deliberately reducing rates to almost zero to stabilize and stimulate the economy. During that period, we all enjoyed appreciation (better prices) in bonds we had purchased earlier.

But now the opposite happening. As rates rise the price of pre-existing bond portfolios with lower captive yields are depressed. As your advisor we continue to participate in the new rate cycle while not abandoning the existing bond portfolios that need time to re-position their holdings in the future. As existing lower yielding holdings mature, they are replaced with higher yields.

As we look at the depressed stock and bond markets, we also view this a time to invest new capital.

If you are holding cash outside of your investment portfolios now is the opportunity to consider investing in short term cash money markets or treasuries with even higher yields.

Read more in our latest blog post: Rising Rates: Short-Term Pain for Long-Term Gain?