A couple of Federal Reserve Governors have indicated that the Fed needs to cut interest rates no more. Some, in fact, were opposed to these last cuts. With the rate of inflation higher than the interest rate what we have are negative real rates in the market today.
While low rates might help stimulate the economy, they will also stimulate inflation, and in a big way. Analysts and the markets themselves are calling for rates to begin going up as soon as this fall.
What does that mean for you as an investor? Well, rising rates are NOT good for bonds, or the stock market. Particularly not good for bonds.
In the April edition of the International Speculator we were given several ways to profit from rising interest rates.
The latest edition of the International Speculator, just released yesterday, gives us even more options for making money as interest rates go back up.
One clarifying point, however. If you short an ETF or stock that pays a dividend, not only do you NOT get the dividend, you have to PAY the dividend! So be careful when shorting any financial instrument like that and count your costs against any potential profits.
If you like the idea of profiting from rising interest rates, click here to learn more about the International Speculator.
