Subscribe: Apple Podcasts | Google Podcasts | Spotify | Amazon Music | RadioPublic | Stitcher | RSS
While there have been lots of headlines and hand-wringing on inflation lately, thus far interest rates, which tend to surge along with inflation, have remained tame. Rates on everything from savings accounts to mortgages are still bouncing along near historic lows.
The question is, how long can that last?
One school of thought, advanced by the Federal Reserve, is that inflationary pressures, now showing up as higher prices on everything from used cars to factory wages, are “transitory” and will begin receding as pandemic labor and supply chain shocks subside.
Others think inflation is here to stay. That could have a negative impact on both stocks and bonds. That’s because the fate of both stocks and bonds, along with many other investments, is intimately tied to interest rates.
When rates are low, as they have been for a decade, companies pay less to borrow and have more to spend, which boosts profits. When rates rise, the opposite occurs: higher borrowing costs, lower profits, lower stock profits.
Rising rates also mean that safer investments, like savings accounts and government bonds, will look increasingly attractive relative to stocks, resulting in money leaving stocks, driving down prices.
What’s an investor to do? That’s what this week’s “Money!” podcast is about. We’re going to explore specific investments that can not only survive but thrive in rising-rate environments.
As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.
Sit back, relax and listen to this week’s “Money!” podcast:
- Listen on Apple Podcasts
- Listen on Google Podcasts
- Listen on Spotify
Don’t listen to podcasts?
A podcast is basically a radio show you can listen to anywhere and anytime, either by downloading it to your smartphone, or by listening online. They’re awesome for learning stuff and being entertained when you’re in the car, doing chores, jogging or, if you’re like me, riding your bicycle.
You can listen to our latest podcasts here or download them to your phone from any number of places, including Apple, Spotify, RadioPublic, Stitcher and RSS.
If you haven’t listened to our podcast yet, give it a try, then subscribe. You’ll be glad you did!
Show notes
Want more information? Check out these resources:
- Is Inflation About to Trash Your Investments?
- Here’s How Low Interest Rates Will Impact Your Retirement
- U.S. News & World Report: How Rising Interest Rates Impact Investors
- Barron’s: How to Protect Your Portfolio From the Inflation Storm
- Barron’s: Inflation Is Here and Hotter Than It Looks. Why It’s Time to Worry.
- Barron’s: How the Fed Could Blow the Inflation Response — and What’s at Stake
- Barron’s: Inflation Has Run Hot for a Long Time. The Fed Knows It.
- New York Times: On inflation, it’s past time for team ‘transitory’ to stand down
- Investopedia: How to Prepare for Rising Interest Rates
- Kiplinger: 7 Best ETFs for Rising Interest Rates
- Kiplinger: 10 Best Stocks for Rising Interest Rates
- U.S. News & World Report: 7 ETFs for Rising Interest Rates
- The Balance: Best Stocks and Sectors for Rising Interest Rates
- CNBC: Here are some moves to consider during a period of rising interest rates
- Investopedia: These Sectors Benefit From Rising Interest Rates
- Barron’s: 9 Stocks That Could Be Good Deals as Interest Rates Climb
- InvestorPlace: 7 Stocks That Could Be Big Winners From Increasing Interest Rates
- Wall Street Journal: What Does Inflation Mean for American Businesses? For Some, Bigger Profits
- CNBC: Warren Buffett says these businesses do the best during periods of high inflation
- Marketwatch: Inflation scare? The stocks that perform best — and worst — when prices rise
- Bloomberg: Getting Inflation Right Is a Make-or-Break Moment on Wall Street
- To see Stacy’s stocks, click here
- Subscribe to the Money Talks News newsletter
- Take our course The Only Retirement Guide You'll Ever Need
- Take our course Money Made Simple
- Miranda Marquit’s website
Add a Comment
Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.