Increasing Returns in a Low Rate Environment
While low interest rates tend to be good news if you carry consumer debt or if you’re shopping for a mortgage, they’re not such great news if you’re a fixed-income investor seeking a steady stream of income to meet your living expenses during retirement.The Federal Reserve has lately been following a policy of keeping interest rates low. With the strength of the economic recovery still uncertain, the Fed hopes that continued low interest rates will help stimulate economic growth. While low interest rates tend to be good news if you carry consumer debt or if you’re shopping for a mortgage,