As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy.
Typically, bond prices and market interest rates move in opposite directions.
While it may be tempting to cling to cash, it will become “less attractive, less productive as interest rates fall,” Ward said.
Many corporations leveraged rock-bottom interest rates during the pandemic to strengthen balance sheets and refinance debt, said Ward.
As interest rates fall, those longer-maturity bonds should reward investors, experts say.
Persons:
”, Scott Ward, ” Ward, Ted Jenkin, Ward, “, Jenkin
Organizations:
Federal Reserve, dovish Fed, Fed, Morningstar, Bond, CNBC’s
Locations:
Birmingham , Alabama, Atlanta, “