For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. While the events of the “lost decade” are now behind us, they can still serve as an important reminder for investors today.
It’s been approximately a decade since the Great Recession began. By year-end 2008, the U.S. Federal Reserve had lowered the target federal funds rate to near-zero hoping to resuscitate the economy. The Fed has now begun to reverse course, restoring its policies and gradually rising rates.As an investor, what can or should you do to prepare if rates do continue to rise? For that matter, what can or should you do if they don’t?