Faculty Publications


How investors can get ready for the first rate hike

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Interest rates are surely going to rise; it isn't a matter of "if" anymore but merely a matter of "when." Investors may believe that they want to exit the stock market in anticipation of rising interest rates, preferring to commit funds to the "safer" bond market. In more normal market conditions, that would be a prudent strategy. Today, however, I believe that there is more risk in the bond markets than in the stock market.