On Forbes: What To Do About Low Interest Rates?

March 27, 2012

What To Do About Low Interest Rates? Janet Brown tackles this common investor question in her latest post the Forbes Intelligent Investing blog.

She offers three key tips:

1. Don’t Focus Only on Yield. “Funds with higher yields may not necessarily perform as well as other funds, or they may take on more risk to achieve that yield,” Janet writes.

2. Keep Risk in Mind. Many dividend-focused funds have higher yields than bonds, Janet points out that that “these are stock funds and aren’t alternatives to fixed income.”

3. Include Fixed Income. Bond yields are low, Janet writes, but “bonds are yielding more than cash, and they also offer investors a buffer against the inherent volatility of stocks.”

Click here to read the full post.

(To read all of Janet’s posts on the Forbes Intelligent Investing blog, click here).

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