September market insights
Fears of 'higher rates for longer' deal a blow to stocks and bonds
What it means for you
There have been a number of financial headlines about the possibility of interest rates being “higher for longer” following September’s Fed meeting. Remember that interest-rate levels rise and fall over time as the Fed seeks to keep inflation close to its 2% target.
It’s very hard to predict what interest rates will do – as evidenced by the market’s surprise at the Fed’s comments this month. That’s why we construct highly diversified portfolios in a way that seeks to achieve returns at appropriate risk levels over the long term, without timing the markets. If your circumstances and goals haven’t changed, nor should your investment strategy. We manage your portfolio to ensure it continues to align with your financial plan.
An index is a portfolio of specific securities (such as the S&P 500, Dow Jones Industrial Average and Nasdaq composite), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.
Investing strategies, such as asset allocation, diversification or rebalancing, do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. All investments have inherent risks, including loss of principal. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Past performance does not guarantee future results.