The stock market rally during the epidemic is nothing short of surprising. But rising interest rates have raised the question of how long this bull market can last.
In the 12 months through March, the average common stock mutual fund tracked by Morningstar returned around 66 percent – a notable rebound after three months The loss About 22 percent at the beginning of last year.
The change took place after the Federal Reserve stepped in to support the financial markets and the economy, fueling the stock market with low interest rates.
But with the fluctuations in the economy, rates have started to rise. At the beginning of a new quarter, it is a prophetic moment to ask how long can this strangely prosperous time last?
My crystal ball is no longer cleaner than before, anyway, and I can’t do market movements better than anyone else. But this is definitely a good time to assess whether you are positioned for a possible downward shift.
As always, the best approach for long-term investors is to establish a portfolio with a reasonable, diversified asset allocation of stocks and bonds and then stick with it, which may come.
Our quarterly report on investment is intended to help. If you have not been an investor before, we have suggested how to get started. Here you will find comprehensive coverage of recent trends, guidance for the future and reflection on personal finance in a challenging era.
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