Cash Management and Investing Strategies When Interest Rates Are Changing
Investors who have a sense of caution about putting long-term, investable assets to work in equities or bonds may find that caution is not rewarded. “Investing is about getting paid for uncertainty,” says Tom Hainlin, national investment strategist with U.S. Bank Asset Management Group. “The idea is that while there are no guarantees about short-term returns, you will be rewarded either for lending your money to a business or government entity (bonds) or participating in a corporation’s future growth (equities).”
While investors in equities and fixed-income instruments must be prepared for periods of market volatility, Hainlin says they should remain determined. “The unknown is always on the…