A Challenge or an Opportunity for Investors? Rising Interest Rates
If you’ve been paying attention to the news, you’ve probably noticed interest rates have still been on the rise. It may lead you to wonder: What role does this play in my investment portfolio? WHAT HAPPENS WHEN INTEREST RATES GO UP? Rising interest rates mean borrowing money gets more expensive. Whether it’s for a house, car, or business loan, higher rates make people think twice before taking on new debt. But beyond your personal budget, interest rates affect the entire economy, including the stock market, bond market, and real estate investments. STOCKS — NOT ALWAYS A SMOOTH RIDE When interest rates rise, companies that rely on borrowing (think tech startups, real estate developers, or any business that
funds expansion with loans) may struggle. Their costs increase, which can eat into profits and slow stock growth. However, some sectors, like banks and financial institutions, tend to benefit because they can charge more for loans. If you’re a long-term investor, rising rates aren’t a reason to panic, but they might mean shifting your focus to companies with strong cash flow and less debt. BONDS — A BALANCING ACT If you hold bonds, you might have noticed their prices dropping because when interest rates rise, new bonds offer higher yields, making older bonds with lower rates less attractive. But don’t dump them just yet. Bonds still play an important role in balancing risk in your portfolio, especially if you’re nearing retirement.
REAL ESTATE — A DOUBLE-EDGED SWORD Higher mortgage rates can feel like a gut punch if you’re in the market for a new home. But if you’re a real estate investor, rising rates could slow down demand, potentially making it easier to find investment properties at lower prices. WHAT SHOULD YOU DO? Rising interest rates are just another market cycle — there’s nothing to fear but definitely something to consider. Diversifying your portfolio, staying patient, and working with us can help you navigate these changes. The key is to stay informed and not allow a little rate hike to throw you off your long-term financial goals.
SUDOKU
GINGER VEGGIE STIR FRY
Inspired by AllRecipes.com
With delicious vegetables seasoned with tangy ginger, this recipe is sure to please vegans and meat-eaters alike!
INGREDIENTS
4 tbsp vegetable oil, divided 2 tsp fresh chopped ginger root, divided
3/4 cup julienned carrots
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1/2 cup snow peas
1/2 cup halved green beans
2 cloves garlic, crushed
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3 tbsp water
1 tbsp cornstarch
2 tbsp soy sauce
1 small head broccoli, cut into florets
1/4 cup chopped onions
1/2 tsp salt
1. In a large bowl, mix 2 tbsp vegetable oil, 1 tsp ginger, garlic, and cornstarch. 2. Add broccoli, carrots, snow peas, and green beans, and toss lightly. 3. Heat the remaining oil in a large skillet or wok over medium heat. Add the vegetables and cook for 2 minutes. 4. Stir in water and soy sauce. Add onion, salt, and the remaining ginger; cook and stir until the vegetables are crisp and tender. DIRECTIONS
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