Last
Wednesday, the US Federal Reserve had announced a certainty for investors and
pensioners: the US' monumentally low interest rates are rising three times for
2017. Much to the chagrin of those indebted, the interest rates wave is not
disappointing if one understands its advantages.
One
advantage is to ensure that one's portfolio is on the proper track -- meaning
part of your investment portfolio is unaffected by the long-term investment
goals. If the goal is to reach a certain amount during a year, assess whether
the buying or selling of a certain stock is worth the actual long-term goal.
Second,
bonds are a great investment nowadays. Their profits are moderate but they
guarantee safety and security especially now that the interest rates for
central US banks are higher. With higher rates, their value is lower -- meaning
you could gain portfolio security once lower interest rates. Balance is truly an
important part of the deal.
Higher
interest rates mean the government is confident in the US economy. It would be
best to move and make minor adjustments in one's portfolio given no drastic
change is needed especially if one's long-term goals remain unaffected. The new
interest rise is only a small change that would affect the market in the
short-term.