The Fed’s rate rise: Three questions investors need to ask themselves NOW | Hacked: Hacking Finance
Hacked: Hacking Finance


The Fed’s rate rise: Three questions investors need to ask themselves NOW

Posted on .

The Fed’s rate rise: Three questions investors need to ask themselves NOW


This article was posted on Wednesday, 19:47, UTC.

There are three key questions investors now need to ask themselves in the wake of the Fed’s interest rate hike (up from 0.75% to 1%), affirms the CEO of one of the world’s largest independent financial advisory organizations.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

deVere Group’s founder and CEO, Nigel Green, is commenting after the Federal Reserve raised interest rates for the second time in three months on Wednesday. It was prompted to do so by strong jobs data, and forecasts that inflation is heading towards its target.

Mr Green says:

This rate rise by the world’s defacto central bank confirms that we’re in a new era of higher inflation and higher interest rates. Investors will now need to position themselves accordingly.

Rates are beginning to normalize. Whilst it may take a couple of years or so to get there, when they do the global economy will look very different to how it does today.

With this shifting landscape, investors now need to ask themselves three key questions.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Is your portfolio truly diversified?

Having a well-diversified portfolio is one of the fundamentals of successful investing, but alarmingly, and for a myriad of reasons, many investors are simply not adequately diversified. This puts them at risk and means they are likely to miss out on opportunities.

Being truly diversified across asset classes, sectors and geographical areas, and not trying to be too smart with sector or regional bets, is perhaps more important than ever. The traditional interrelationship between sectors and regions has diminished since President Trump took office. A lot will be riding on which way the greenback heads and, crucially, which policies are green-lit by Congress.

are you prepared for dollar swings?

In the short term, higher Fed rates will attract overseas capital into the U.S., especially to those sectors, such as energy and financials, that will most likely benefit from Trump’s policies. On the flip side, emerging markets will become less attractive because a strong dollar makes interest and repayment more costly in local currency.

However, the strength of the dollar might weaken again in the coming months. The markets are pricing in three hikes in 2017 – I think it will be two, which would result in a fall back of the greenback later in the year.

Are you prepared for inflation?

The American economy might not have a serious issue with inflation now, but we can be almost sure inflation is going to creep up on us.

// -- Get exclusive consultation for as low as $249 per month on -- //

Investors need to keep some powder dry in preparation for this time as their dollar-buying power will be hit when it finally arrives.

Investors who answer these questions honestly and then take affirmative action will find that they do not need to accept lower returns in this new era of higher rates and inflation.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.

Feedback or Requests?

Edward Talliot

Edward Talliot

Multiple journalists and analysts are behind the name Edward Talliot.

There are no comments.

View Comments (0) ...
The team:
Dmitriy Lavrov
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Jonas Borchgrevink is the founder of and He is a serial entrepreneur, trader and investor. He shares his own personal journey on // -- Discuss and ask Read More
P.H. Madore
ICO Analyst
P. H. Madore lives in Arkansas with his wife and children. He has covered the cryptocurrency beat over the course of hundreds of articles for Hacked’s sister site, CryptoCoinsNews, as Read More
Mate Csar
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Justin O’Connell
Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
Mati Greenspan
Senior Market Analyst at // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
Bitstamp, the bitcoin exchange, is partnering with CACEIS, the servicing…