How does rates hike affect your life and investment?
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.
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.
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.
Which type? Click Course Invest Your Idle Money Effectively to know.
Quiz of Today: Which mutual fund is the lowest risk?
Quiz of Today: Which mutual fund is the lowest risk?
A. Equity fund
B. Fixed-income fund
C. Balanced fund
D. Cash management fund
Leave your answers in the comments.
Wanna invest funds wisely? Take an exam to hone your skills. Click to start now!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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1994CM : My answer is D.
Milk The Cow 1994CM: Yup, is D. Confirmed + Chopped .
Milk The Cow Milk The Cow: Because I'd already invested all in the real practical for short or long term.
And it's true that equity fund has the highest return with higher risk if u choose the right fund .
Surprising I earned more from the equity fund than MMF & Bond for the short term (Gotten my tendies already ). Bond instead make me loss ... in the short-term... (Very small amount)
Why I made from equity fund is because I'd DYODD & not some 'luck' .
By the way, I loss from bond is some 'luck' +...
Ong2ah : D
Moomoo Learn SGOP Milk The Cow: thx for your sharing! It is great
I believe you can pass the exam and light up your badges
Milk The Cow Moomoo Learn SGOP: yup
Alvin_YiDa : D!!!
銭小钦 : I don't quite understand the narration in the title.
杰曼 : D for Donkey
HuatEver : I Guess it is “D”.
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