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Welcome to CNBC Select's advice column, Getting Your Money Right , where financial advisor Kristin O'Keeffe Merrick will be answering your pressing money questions. I have yet to meet someone who likes tax season, but I can definitely help make it less painful for you. Every year when tax season comes around, I find that I am overwhelmed by what I need to do in order to prepare. Filing electronically is more efficient and helps you receive your money from the IRS much faster. All the best,KristinKristin O'Keeffe Merrick is a Financial Advisor and money expert at her family-run firm, O'Keeffe Financial Partners, located in Fairfield, NJ.
Welcome to Select's advice column, Getting Your Money Right , where financial advisor Kristin O'Keeffe Merrick will be answering your pressing money questions. You can read her last installment here on whether to invest in bonds when interest rates are high . They are volatile, good news seems to be bad news, bad news is good news — everything seems to be defying the textbooks. After wading through the market meltdown of 2022, it feels like we deserve a rally and some peace! Lots of investors have started this year with cash to spend and are looking to buy stocks that are "cheap".
When interest rates rise , bond prices go down in value. A bond's duration is the measure of its price sensitivity in relation to a change in interest rates. Before we get into it though, I need to provide some context about interest rates and how they correspond to bonds. With interest rates on the rise, bonds will pay higher coupons. Energy and materials have also done well due to the increase in prices (inflation) that comes along with rising interest rates.
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