We get two big questions every year: 1) What do you think the market is going to do? 2) What are interest rates going to do?
One is easier to predict than the other. Long term, both go up from here. Though historically, rates had been falling for 30 years and can only go up and the market goes down for short periods but has always recovered.
Back to question #2. What are interest rates going to do? Kathy Jones, a fixed income specialist at Charles Schwab, sees rocky times ahead in the fixed income markets. Tighter fed policy implies that real and inflation-adjusted rates will rise.
“The liquidity party of the last 6 years appears to be coming to an end.”
Give us a call to discuss how this might impact your planning.