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Commentary

Don't Be Scared of Rising Interest Rates

Our study shows that diversified portfolios perform just fine.

Ahead of the Fed’s rate decision later today, we’re refeaturing this research article from 2014 on how investors’ portfolios have fared in rising rate environments. 

One of the most frequently asked questions that we have been hearing over the past few years has been, "What impact would rapidly rising interest rates have on our bond holdings?" We know we are not alone in hearing this concern, considering how often this topic is discussed in the media. As most investors are well aware, when interest rates rise, bond prices go down, so these ostensibly safe bond holdings now appear riskier than before.