14/04/2022
Two days ago, we received from The Fed that the ๐๐ ๐ข๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง ๐ข๐ฌ ๐ฎ๐ฉ ๐ญ๐จ ๐.๐%. ๐ฑ
Not forgetting the ๐๐ข๐ง๐ ๐๐ฉ๐จ๐ซ๐ ๐ข๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง ๐๐ญ ๐.๐% ๐ฌ๐ข๐ง๐๐ ๐๐๐ซ๐๐ก ๐๐.
Is inflation good or bad? I would say it depends. We need to have inflation but not too much or not less.
๐๐จ ๐ฒ๐จ๐ฎ ๐ฎ๐ง๐๐๐ซ๐ฌ๐ญ๐๐ง๐ ๐ก๐จ๐ฐ ๐ข๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง ๐ฐ๐จ๐ซ๐ค๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ก๐ข๐ค๐ ๐ซ๐๐ญ๐๐ฌ ๐จ๐ซ ๐ข๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐ซ๐๐ญ๐๐ฌ ๐๐ง๐ ๐ก๐จ๐ฐ ๐ฒ๐จ๐ฎ๐ซ ๐ฌ๐๐ฏ๐ข๐ง๐ ๐๐๐๐จ๐ฎ๐ง๐ญ๐ฌ ๐ฐ๐จ๐ซ๐ค ๐๐ญ ๐ญ๐ก๐ข๐ฌ ๐ฆ๐จ๐ฆ๐๐ง๐ญ? ๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐๐๐ญ๐๐ฌ ๐ข๐ฆ๐ฉ๐๐๐ญ ๐ฒ๐จ๐ฎ๐ซ ๐๐๐ซ๐ง๐ข๐ง๐ ๐ฌ ๐ข๐ง๐๐จ๐ฆ๐ ๐ญ๐จ ๐๐๐ฅ๐ฅ ๐จ๐ซ ๐ฌ๐ฅ๐จ๐ฐ ๐๐จ๐ฐ๐ง!
Honestly, this is reality. Food and services, houses are getting too expensive. Even the luxury brands increase their prices like crazy. Yes, I agree Interest keeps the economy moving by encouraging people to borrow, to lendโand to spend.
Higher interest rates make loans more expensive for both businesses and consumers, and everyone ends up spending more on interest payments.
๐๐ง ๐๐๐ซ๐๐ก ๐๐๐๐, ๐ญ๐ก๐ ๐
๐๐๐๐ซ๐๐ฅ ๐๐๐ฌ๐๐ซ๐ฏ๐ ๐ฌ๐ญ๐๐ซ๐ญ๐๐ ๐ก๐ข๐ค๐ข๐ง๐ ๐ญ๐ก๐ ๐๐๐๐๐ซ๐๐ฅ ๐๐ฎ๐ง๐๐ฌ ๐ซ๐๐ญ๐.
Not all Fed rate hikes are going to impact you directly, and not all corners of your financial world are going to be affected by rate changes.
But keeping tabs on changes to monetary policy is an important part of keeping your financial life in order.
For all investors, especially anyone whoโs getting close to retirement, rising rate environments need to be handled with care. As in any other market condition, striking the right asset allocation among stocks, bonds, and cash is the best way to mitigate the impact of rising rates.
Many times, the stock and bond markets react in an unexpected way during rising interest rates,โ says Brian Stivers, president and founder of Stivers Financial Services in Knoxville, Tenn. โThat means stock prices could go up when historically they have gone down. So, as in all types of markets, diversification is the key.โ
Start to invest with a suitable financial solution to beat inflation and reduce the impact of the rising rates.
Talk to me to find more financial solutions opportunities to let your income work harder for you in this high inflation world.