Are You Ready for Rising Rates?

Last week, Federal Reserve Chairman Ben Bernanke and his band of central bankers signaled the market that the near zero cost of capital is going to continue for some time. However, what you have to remember is that the Fed doesn’t control the long end of the interest rate spectrum. Long-term interest rates, i.e., long-term Treasury yields, are a function of market activity.

I think rising interest rates are a very real possibility as we head into 2010 and beyond. In fact, I am of the opinion that interest rates are going to be much higher in the years to come, and that means you should consider an allocation to investments that move higher along with interest rates.

In my latest Rising Interest Rates Special Report, I outline my concerns for the bond market, ways to profit from rising rates, and actions you can take to shelter your portfolio now.

If you have a portfolio made up of bond funds or individual bond positions, now is an excellent opportunity to get a second opinion on your holdings. Contact us for a brief introduction and to schedule a follow-up phone call. We’ll conduct a revealing assessment on your holdings, and give you specific recommendations for what you can do to better position your assets for the year ahead.

You can call our offices at 800/391-1118 to setup a consultation, or register online.

NOTE: Fabian Wealth Strategies is an SEC registered investment adviser, and is not affiliated with Eagle Publishing.