inflation Archives - Cabot Wealth Network
  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Events
    • Summit
    • Webinars
  • About
  • Manage Account
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Cabot Wealth Network Logo

  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Events
    • Summit
    • Webinars
  • About
  • Sign In
  • Register
  • | Register

Can You Still Own Bond ETFs When Interest Rates Are Rising?

inflation Archives

What is Inflation?

You may remember from Economics 101 that inflation is basically defined as “too much money chasing too few goods and services.” Here’s what that means for investors.

At its most basic, inflation means it costs more money to buy goods and services. It means that dollar bill in your pocket isn’t worth as much right now as it was ten years ago. 

For investors, inflation is widely believed to be detrimental to bonds, but there are conflicting opinions on how it influences stocks. In a nutshell, the positive impact of inflation on the top line is nullified by various associated costs, resulting in a neutral bottom line. So the equity side of the balance sheet faces almost no impact from inflation, resulting in a neutral return on equity but a higher debt-to-equity ratio.

It’s worth pointing out, however, that inflation is intimately tied to interest rates. Inflation is the number-one driver of higher interest rates, and that’s controlled to some extent by the Federal Reserve. 

Throughout its history, the Fed’s priorities have evolved to reflect changes in the economy. Prior to World War II, its role generally remained limited to maintaining financial market stability and preserving the value of the dollar. With the arrival of the war, the Fed’s policy shifted to help keep interest rates low to facilitate the government’s war borrowings. In the decades after the war, the Fed’s primary objective was to keep inflation tamped down – occasionally raising interest rates to “remove the punch bowl just as the party was getting started.” 

In short, forecasting the dollar’s trend is a notoriously difficult task due to the myriad of variables involved. For investors, the overall economy is worth keeping an eye on, however, the answer to the “what to do with your money” question is obviously to invest it.

Investing puts your money to work for you and offers the possibility of outpacing inflation and even multiplying it over time.

To learn more about stocks and investing, download our FREE report, How to Invest in Stocks and Other Investing Basics, today. You’ll learn about the four types of stocks, what it takes to be a successful investor, and you’ll discover five reasons you should skip the broker and invest on your own. 

Read More
Can You Still Own Bond ETFs When Interest Rates Are Rising?

Can You Still Own Bond ETFs When Interest Rates Are Rising?

May 19, 2022|by Cabot Wealth Network

What’s the safest way to own bonds when interest rates rise? That’s a question many investors, especially in bond ETFs, are asking today. Here's my answer.
Read More

2 High-Yielding Bargain Tech Stocks

2 High-Yielding Bargain Tech Stocks

May 19, 2022|by Tom Hutchinson

We don't normally think of technology stocks as being "cheap." But there are a lot of bargain tech stocks out there now. Here are two I like.
Read More

2 Wheat Stocks (and 1 ETF) Getting a Big Boost from Russia/Ukraine

2 Wheat Stocks (and 1 ETF) Getting a Big Boost from Russia/Ukraine

May 18, 2022|by Chris Preston

The war in Ukraine has pushed wheat prices to record highs. Buy these two wheat stocks (and one ETF) while the rest of the market flounders.
Read More

3 Shipping Stocks and ETFs to Ride Out Inflation

3 Shipping Stocks and ETFs to Ride Out Inflation

May 18, 2022|by Clif Droke

While metals have retreated in recent weeks, shares of shipping companies are on the rise. Here are my favorite shipping stocks and ETFs.
Read More

10 Highest Paying Dividend Stocks in the Dow

10 Highest Paying Dividend Stocks in the Dow

May 17, 2022|by Clif Droke

The 10 highest paying dividend stocks in the Dow Jones Industrial all yield more than 3%. But which of them would I buy today?
Read More

Gold Prices vs. U.S. Treasury Bond Yields: Only One Can Win

Gold Prices vs. U.S. Treasury Bond Yields: Only One Can Win

May 16, 2022|by Clif Droke

Gold prices have been in decline despite the weakened dollar. What will it take for the yellow metal to shine again?
Read More

Why You Should Buy Gold Stocks as Interest Rates Rise

Why You Should Buy Gold Stocks as Interest Rates Rise

May 16, 2022|by Clif Droke

They haven't gotten going just yet, but in the intermediate term gold stocks almost always benefit from rising interest rates, history shows.
Read More

The Reserve Currency for the Digital Age

The Reserve Currency for the Digital Age

May 10, 2022|by Ian Beaudoin

Bitcoin - and other cryptocurrencies - are becoming the reserve currency for the digital age. Here's what that means - and how to profit.
Read More

The Best Conservative Dividend Stocks for 2022

The Best Conservative Dividend Stocks for 2022

May 9, 2022|by Tom Hutchinson

While a surprisingly good year for the market, 2020 has not been kind to dividend payers. Here are 4 conservative dividend stocks for 2021.
Read More

Gold as an Investment: The Good, the Bad and the Ugly

Gold as an Investment: The Good, the Bad and the Ugly

May 9, 2022|by Cabot Wealth Network

Gold's value as a safe-haven instrument is undeniable, but gold as an investment loses much of its luster over the long haul.
Read More

3 Safe Haven ETFs to Buy as Big Money Turns Bearish

3 Safe Haven ETFs to Buy as Big Money Turns Bearish

May 6, 2022|by Clif Droke

Big money investors are as bearish as they've at they've been in the last two decades. So it's a good time to buy these safe haven ETFs.
Read More

3 Types of REITs for Rising Interest Rates

3 Types of REITs for Rising Interest Rates

May 5, 2022|by Nancy Zambell

The promise of rising interest rates spooks markets and investors, but it's good for certain stocks - REITs in particular.
Read More

How to Find Low-Beta Stocks in a High-Risk Market

How to Find Low-Beta Stocks in a High-Risk Market

May 5, 2022|by Nancy Zambell

In a struggling stock market, it makes sense to take on less risk in your investing. Low-beta stocks are a good place to start.
Read More

Lowe’s vs. Home Depot Stock: Which is the Better Value?

Lowe’s vs. Home Depot Stock: Which is the Better Value?

May 5, 2022|by Brad Simmerman

With housing demand still strong and the home improvement market growing, it's time to break down Lowe's vs. Home Depot and pick the better home improvement stock.
Read More

Can You Hold MLPs in Your IRA?

Can You Hold MLPs in Your IRA?

May 3, 2022|by Cabot Wealth Network

If you own a large dollar amount of individual MLPs, you may be best off holding them in a regular taxable brokerage account, and here's why.
Read More

5 Steps to Protect Your Portfolio

5 Steps to Protect Your Portfolio

May 3, 2022|by Nancy Zambell

Market volatility is unavoidable but these steps can help you protect your portfolio during market downturns.
Read More

How Russia is Driving the New Gold Bull Market

How Russia is Driving the New Gold Bull Market

May 2, 2022|by Clif Droke

Gold prices are in the midst of a major comeback. And Russia is having a more direct hand in the new gold bull market than you've heard.
Read More

The 3 Best Income Stocks to Buy Now

The 3 Best Income Stocks to Buy Now

April 29, 2022|by Tom Hutchinson

Growth is difficult to come by in this market. Growth and income are even harder. The three best income stocks combine both elements.
Read More

10 Basic Rules of Investing According to the Legends

10 Basic Rules of Investing According to the Legends

April 29, 2022|by Cabot Wealth Network

Follow the 10 basic rules of investing and you'll be on your way to a strong and secure investment portfolio that the investing greats would be proud of.
Read More

How to Avoid the Biggest Investing Schemes and Rip-Offs!

How to Avoid the Biggest Investing Schemes and Rip-Offs!

April 29, 2022|by Nancy Zambell

Since the market bottom on March 6, 2009—when the Dow Jones Industrial Average sunk to 6,469.95—investors have lined their pockets with lots of coin. Sure, COVID sent the markets reeling—down to 19,173.98 on the Dow in March 2020—but since then, boy, have we Despite...
Read More

Older Articles

What Can We Help You With?

What Can We Help You With?

As Seen On

As seen on these popular channels

Our Newsletter Updates

Browse Topics

  • Dividend Stocks
  • Emerging Markets
  • ETFs
  • Growth Stocks
  • How To Invest
  • Income Investing
  • Options Trading
  • Personal Finance
  • Precious Metals Investing
  • Real Estate Investing
  • Small-Cap Stocks
  • Stock Market
  • Value Investing

Recent Previews

  • How to Avoid the Biggest Investing Schemes and Rip-Offs!
  • How to Manage Your Investments and Your Money with the Best Tools Available!
  • How to Buy or Start Your Own Small Business

Latest Videos

Video: Another Generally Down Week in the Market | Cabot Weekly Review

Upcoming Events

3 Precious Metals Outperforming Gold – and the Market

FREE WEBINAR: Thursday, June 30, 2022 at 2:00 PM ET with Clif Droke, Chief Analyst, Cabot SX Gold & Metals Advisor

Space is limited so sign up now for FREE.

Free Reports

  • The 7 Best Places in the World to Retire on a Budget
  • How to Invest in Precious Metals: More Than Just Buying the Best Gold Stock
  • 5 Best Stocks to Buy in May
  • Cabot’s Best Dividend Stocks
  • How Options Work—and How to Hedge Portfolios with Options
  • How to Find Undervalued Stocks
  • How to Invest in Stocks and Other Investing Basics
  • Mortgage Interest Rates: How to Find the Best Interest Rates and Other Tips for Securing Low Mortgage Payments
  • 5 Tips for Making Insurance Work for You
  • Technical Analysis of Stocks
  • How to Invest in Marijuana Stocks

Reviews

  • Hi Mike: I just wanted to express my appreciation and thanks for your timely advice. Your recommendations are perfect ( as an investor, I know you cannot be ALWAYS right)  but having been a subscriber for over 30 years, when Carlton was running the letter) I am still very dedicated and love your style of writing and your recommendations. I always look forward to your letter and follow it to the last word---there is nothing better than this. Best wishes and keep up the good work--- I am dedicated to your letter forever.

    -R. Bhatia, Irving TX

Enter Your Log In Credentials

This setting should only be used on your home or work computer.

  • Lost your password? Create New Password
  • No account? Sign up

Need Assistance?

call Cabot Wealth Network Customer Service at

1 (800) 326-8826

  • Manage Account
  • About
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Copyright © 2022 Cabot Wealth Network
Cabot Heritage Corporation
PO Box 2049
201 Washington Street, Suite 215, Salem, MA 01970 USA
Phone: 1 (800) 326-8826
Email: support@cabotwealth.com

Powered by Mequoda Systems

Subscribe to Our Newsletter

Discover the hottest stocks, investing tips and analysis from Cabot analysts in our free Cabot Wealth Daily newsletter delivered right to your inbox.

Cabot Wealth 50 Plus