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Lowest stock allocation since 2008: How to place your money?
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How does rates hike affect your life and investment?

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Moomoo Learn SG joined discussion · Jul 28, 2022 21:47
Hi, mooers! You may know the news:
The Fed Wednesday raised its interest rate by a noticeable 75 basis points, the fourth time since March this year. Two weeks ago, the MAS also tightened its monetary policy to slow inflation, the fourth time in the past nine months.
Source: Monetary Authority of Singapore Policy Statement
Source: Monetary Authority of Singapore Policy Statement
What does it do with our life and investments?

Indeed, many central banks worldwide have been progressively tightening monetary policy amid the aggressive inflation and the Fed's influence. These latest measures signaled higher borrowing costs for homes, cars, credit cards, and other services. Moreover, the investment risk appetite decreased.

But the good news is that the stock market rose further following the Fed's rate hike as the Fed may moderate the pace of raising the interest rate in the coming months.
At the same time,savings rates have risen as interest ratesincrease, which means more interest for savers to gain.However, the smarter investors would choose a type of mutual funds to earn more returns than a savings deposit account.
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A. Equity fund
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D. Cash management fund
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How does rates hike affect your life and investment?
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