Low interest rates are meant to stimulate economic growth by making it cheaper to borrow money to invest in physical and financial assets. Of course, there are always two sides to every story and with the increased ease of borrowing money brings the reduced return on investment.
With interest rates at tremendously low levels, we believe that you should be cautious in the average maturity to protect against rising interest rates. The FED has been raising rates recently and there has been discussion about increasing inflationary pressures which would indicate additional increases in rates.
A prudent approach to portfolio construction and focus on long term investing is the best process to follow. If you’re interested in learning more about our financial approach, contact our team today. Let’s Talk.
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