Loosening Money Supply and Bonds

Transcript:

This is money talks with Chad Olivier, sponsored by Olivier Group.

Hi. I’m Chad Olivier, CEO and certified financial planner with Olivier Group. We’re heading into a phase where the money supply is starting to loosen, especially as we see the signs of the economy slowing down. One of the main ways the Federal Reserve loosens the money supply is by by lowering interest rates.

Now this tends to be very favorable for the bond market. Here’s why. When interest rates go down, bond prices usually go up. So if you’re holding bonds or other fixed income investments in your portfolio, you could benefit from both high dividends and price appreciation.

This is one of the reasons why it’s important to maintain a diversified portfolio.

Not only are you earning strong interest payments from your bonds, but you’re also positioned to see growth when rates decline, which can help balance out the more volatile parts of your investments.

Making sure your portfolio is set up to take advantage of the shifts in the economy can make a real difference over time. If you’d like to see how we can help you position your investments for opportunities ahead, visit us at Olivier Group dot com and connect with our team. And that’s why money talks, planning pays.

This has been money talks with Chad Olivier.

 

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