Home>Topics>>Dow, S&P 500 rise after Fed minutes reassure on rates
Dow, S&P 500 rise after Fed minutes reassure on rates
Reuters: Business News
Wed, 20 Aug 2014
NEW YORK (Reuters) - U.S. stocks ended mostly higher on Wednesday, with the S&P 500 just missing a record close, after minutes from the Federal Reserve's July meeting gave investors reason to believe that the central bank is in no rush to raise interest rates.
Though some assets are more sensitive to interest rates, even a conservatively tilted diversified portfolio has historically been able to produce positive returns through rising-rate environments, says David Falkof of Morningstar Investment Management.
Roundtable Report: At the outset of 2014, Morningstar strategists dig into the market's current valuation and expected return, seek out high-quality U.S. and foreign stock opportunities, size up the role of cash today, assess the Fed's impact on the market, and reveal the best ways to fight inflation.
During his keynote presentation at the Morningstar Investment Conference, the PIMCO manager made the case that high debt levels and a need for financial stability mean that central banks should keep real rates close to zero for some time.
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