Frequent headlines over the last few months reference two similar messages: “Death of the 60/40 Portfolio” and “Higher Rates Spell Inflation Doom.” Both warnings are about our current environment of rising interest rates and lower investment expectations for bond investments. It’s a tough pill to swallow because we’ve been in a falling interest rate environment since the early 1980s.
However it’s important to understand that a rising interest rate environment doesn’t necessarily mean inflation is right around the corner, or that now is the time to sell all your bond holdings. In this episode, Jay Pluimer discusses the outlook for bond prices over the next few years and what it could mean for investor portfolios.
Check back next week for more Flourish Insights with Jay Pluimer and don’t forget to check out our insights blog at https://www.flourishinsights.com
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