Take Financial Responsibility
Each investor should be responsible for understanding the current market environment. Currently the US is a robust place to investor your capital. The economy is growing at a moderate pace,and stocks are in their 6th year of a bull market. It will be very difficult to determine when stocks will turn, but the first signal will be the end of the bull market inbonds.
Bonds are a financial instrument that are similar to loans, and generally increase in value as interest rates decline, and drop in value of interest rates climb.
Interest Rates
Interest rates will begin to climb quickly from their historically low levels, as the economy expands and inflation begins to rise. The Federal Reserve has been very cautious abound raising interest rates, but they are closer to raising them nowthen any time in the past 7-years.
If the Federal Reserve signals that they are beginning the process of increasinginterest rates, bond prices will fall, and investors who are relying on these instruments to provide a diversified portfolio, will find out that they could have made a mistake.
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