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How to invest during a high interest rate era
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Carrying a balance on a credit card is more painful nowadays, and would-be homebuyers are finding they have to settle for smaller houses or longer commutes–or renting–as mortgage costs soar.
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Now that many are playing the market, today’s high interest rates are a subject of casual conversation, like talking about the weather. And like the weather, interest rates have had unpredictable effects.
In a little more than two years, the US Federal Reserve has raised the federal funds rate, the benchmark that influences the cost of borrowing just about everywhere, from near zero to more than 5.25 per cent. That is a big change on its own, but it also represents an almost generational shift.
