Interest rate hikes are coming in fast and furious. How to prepare your portfolio for it.
By New Academy of Finance  •  January 14, 2022

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Interest Rate Hikes. Should you be concerned? The latest December data indicated that inflation in the US is running at the hottest level since 1982, as prices rose for an array of goods especially housing, cars, and food. The Consumer Price Index or CPI climbed 7% in 2021, the largest 12-month gain over the last 4 decades. This sets the stage for the start of Fed rate hikes as soon as March. While the Fed has publicly guarded for 3 rate hikes this year, Goldman Sachs believes that there will be 4 rate hikes this year, with a more “scary” prospect being the shrinking of the Fed’s balance sheet. A rapid rate rise that is supported by strong economic growth is generally positive for the stock market, based on historical data.  However, one has to discern the fact that not all rate rises...
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By New Academy of Finance

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