News from Schott Financial Management

An Update on Rising Interest Rates

Oct 6, 2022

Interest rates are rising thanks to the Fed.

I’ve been in training for several weeks. Attending Cambridge’s National Conference and then a market update seminar for First Trust. The purpose of this training was to be around the best minds in our industry. The re

sounding takeaway is two-fold. The market is slightly undervalued, and volatility will continue until the Federal Reserve stops raising rates.

Other highly-debated topics are whether or not the United States is currently in a recession, when will the Federal Reserve cut rates, and what will the unemployment numbers be.

There are a few items to consider:

  1. Portfolio Review: let us compare your positions with risk tolerance and make sure your investments are diversified.
  2. Rising Rates: with rising yields due to aggressive rate hikes by the Federal Reserve, clients may want to consider some fixed-income exposure.
  3. Small-Cap Stocks: for clients with a longer investment horizon, down markets could be considered buying opportunities. I am specifically looking at US-based small-cap stocks.

As always, please don’t hesitate to give us a call with any questions or concerns. We are here for you and appreciate your business.

Securities are offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services are offered through Cambridge, a Registered Investment Adviser.  Schott Financial Management and Cambridge are not affiliated.