Author Topic: What investments work well in a rising interest rate environment?  (Read 1748 times)

FrugalSaver

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Now that the normalization finally of superficially low interest rates is underway.

retireatbirth

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Re: What investments work well in a rising interest rate environment?
« Reply #1 on: February 11, 2018, 11:41:47 AM »
I think it's hard to say as we have little experience with that.

http://www.multpl.com/10-year-treasury-rate

Equities worked just fine in the 50s and 60s. The lesson from that last experience was obviously to better control the Fed Funds rate to keep inflation in check so it's doubtful we'd see anything like the 70s again.

As far as bonds, short maturity bonds are probably the better bet.

LWYRUP

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Re: What investments work well in a rising interest rate environment?
« Reply #2 on: February 11, 2018, 11:47:13 AM »

42.5% VTSAX (Vanguard total USA stock market, mutual fund admiral shares)
42.5% VTIAX (Vanguard total international stock market, mutual fund admiral shares)
15% VBTLAX (Vanguard total USA bond market, mutual fund admiral shares)

Keep it simple, stay the course.