From various podcasts and online sources there's an expectation that interest rates will be on an upward trend in the long term (10 years or so).
I'm wondering how people might be building their long term portfolios to hedge against this?
I've found some information online (but not much to inform what portfolios changes hedge against rate rises in the long term):
- Stock price growth and yields generally decline.
- REIT prices and yields generally decline due to leveraged debt.
- Bond prices decline due to lowered demand.
- Gold price growth declines, but not as much as stocks.
- Bank stock price growth generally increases due to increased profitability.
Have you been doing anything with your portfolios to hedge against this? Any thoughts are also welcome.
Submitted April 04, 2017 at 04:54AM by CheckRaise500 http://ift.tt/2oE89vN
