The recent Fed hints at ending QE means rising interest rates. It also means big changes in the markets. Here are several ETFs to protect yourself and invest in as interest rates rise.
Let’s keep this simple. Back in September the Federal Reserve announced QE3 which expanded its bond buying program to $85 billion per month and added mortgaged backed securities to its buy list. This did two things:
- Lowered long-term interest rates by pushing bond prices higher (explained here)
- Supported the mortgage market
This was done to spur economic growth and hiring. It wasn’t going to last forever, either, and the Fed is already planning the unwind. Continue Reading…
Whether a stock pays dividends may play a big role in your investment strategy. A dividend provides a source of income. It offsets losses. When reinvested, it compounds growth. But this isn’t an argument that dividend paying stocks are better. It’s an introduction to dividends, giving you an idea of what to expect and what to watch out for when owning dividend stocks.
A common way for companies to return money to shareholders is through stock buybacks. When done right, it’s the easiest way a company can increase shareholder value outside of growing the company’s earnings.
There was time when families would hunker down around the TV to watch the big show of the night. It was a bit more black and white back then, literally, and the only competition was radio.