What impact do interest rates have on my investments?

What impact do interest rates have on my investments?

Interest rates can significantly affect your investments. When rates rise, borrowing costs increase, which can slow economic growth and impact stock prices.

How do rising interest rates affect the stock market?

Rising interest rates often lead to lower stock prices as companies face higher borrowing costs and consumers may spend less.

What about bonds? Do they get affected too?

Yes, bond prices typically fall when interest rates rise because new bonds are issued at higher rates, making existing bonds less attractive.

Should I adjust my investment strategy in a rising interest rate environment?

It might be wise to consider diversifying your portfolio, focusing on sectors that perform well in higher interest rate environments.

Can you suggest some investment options that are good during high interest rates?

Sure! Look into short-term bonds, dividend-paying stocks, and real estate investment trusts (REITs) as they can perform better in such conditions.