Interest Rates Articles
As Interest Rates Come Down, What Moves Are Savvy Investors Making?
November 2024 by Jenna Brashear
Hear how AAII members plan to proceed now that interest rates are being cut.
November 2024 by Jenna Brashear
Hear how AAII members plan to proceed now that interest rates are being cut.
Interest Rates on Savings Still High as Rate-Cut Cycle Begins
October 2024 by Charles Rotblut
Two charts show the trends in interest rates since 2021.
October 2024 by Charles Rotblut
Two charts show the trends in interest rates since 2021.
Bond Strategies for a Shifting Interest Rate Environment
September 2024 by Hildy Richelson, Stan Richelson
Bonds can help you achieve your financial goals by providing reliable cash flow, protecting your principal and creating growth through compounding interest.
September 2024 by Hildy Richelson, Stan Richelson
Bonds can help you achieve your financial goals by providing reliable cash flow, protecting your principal and creating growth through compounding interest.
How AAII Members Have Responded to Interest Rate Hikes
August 2023 by Charles Rotblut, Anine Sus, Grace Malone, Lili DeFilippis, Andrew Gomes
A comparison of popular sources for portfolio income now compared to August 2020, before rates began to rise.
August 2023 by Charles Rotblut, Anine Sus, Grace Malone, Lili DeFilippis, Andrew Gomes
A comparison of popular sources for portfolio income now compared to August 2020, before rates began to rise.
Investors Weigh In: Do Rising Interest Rates Call for Increased Allocation to Bonds?
December 2022 by Jenna Brashear
Have rising interest rates got you thinking about increasing your allocation to bonds? Members share their strategies in the AAII Income Investing Community.
December 2022 by Jenna Brashear
Have rising interest rates got you thinking about increasing your allocation to bonds? Members share their strategies in the AAII Income Investing Community.
Savings Account Yields Are the Highest Since 2008
December 2022 by Charles Rotblut
After more than a decade of extremely low interest rates, savers are finally seeing yields on their cash savings rise.
December 2022 by Charles Rotblut
After more than a decade of extremely low interest rates, savers are finally seeing yields on their cash savings rise.
Shop for Yields, but Be Careful About Where You Bank
December 2022 by Charles Rotblut
The best yields can be found online. However, be sure to verify that the bank or credit union is insured.
December 2022 by Charles Rotblut
The best yields can be found online. However, be sure to verify that the bank or credit union is insured.
Online Exclusive: What Is the Yield Curve?
August 2022 by Matthew Bajkowski
The yield curve of U.S. Treasuries is a beneficial tool for investors in that it may identify major potential changes in the economy ahead of their occurrence. It is also free to the public and easy to use.
August 2022 by Matthew Bajkowski
The yield curve of U.S. Treasuries is a beneficial tool for investors in that it may identify major potential changes in the economy ahead of their occurrence. It is also free to the public and easy to use.
Should You Buy Bonds When Interest Rates Are Rising?
August 2022 by Hildy Richelson, Stan Richelson
Whether interest rates are rising or falling, a custom ladder of high-quality bonds will produce a consistent cash flow.
August 2022 by Hildy Richelson, Stan Richelson
Whether interest rates are rising or falling, a custom ladder of high-quality bonds will produce a consistent cash flow.
Yield Curve Inverted, but Not Yet Signaling a Recession
August 2022 by Charles Rotblut
The yield curve is a closely watched harbinger of recessions. Inverted yield curves have previously preceded most recessions over the past 50 years.
August 2022 by Charles Rotblut
The yield curve is a closely watched harbinger of recessions. Inverted yield curves have previously preceded most recessions over the past 50 years.
Online Exclusive: Understanding the Breakeven Inflation Rate
June 2022 by Matthew Bajkowski
The breakeven inflation rate is a helpful guide for determining minimal rates of return required to maintain wealth in real terms.
June 2022 by Matthew Bajkowski
The breakeven inflation rate is a helpful guide for determining minimal rates of return required to maintain wealth in real terms.
Why I Bonds Have Appeal When Inflation Is Rising
June 2022 by Charles Meyer
With part of its interest rate based on the rate of inflation, Series I savings bonds might be worth a look in the current environment.
June 2022 by Charles Meyer
With part of its interest rate based on the rate of inflation, Series I savings bonds might be worth a look in the current environment.
Tracking the Market's Expectations for Interest Rate Hikes
March 2022 by AAII Staff
A measure we follow to gauge expectations for monetary policy is the CME FedWatch Tool.
March 2022 by AAII Staff
A measure we follow to gauge expectations for monetary policy is the CME FedWatch Tool.
Many Individual Investors Are Relying on Equities for Portfolio Income
September 2020 by Charles Rotblut, Ryan Reeh, Will Pfeffer
A look at attitudes of AAII members to the historic low interest rates and the Federal Reserve’s intention to keep rates low.
September 2020 by Charles Rotblut, Ryan Reeh, Will Pfeffer
A look at attitudes of AAII members to the historic low interest rates and the Federal Reserve’s intention to keep rates low.
The Risks of Investing in Bonds
May 2020 by Brian Haughey
Living in an unprecedented interest-rate environment, bond investors probably face more interest-rate, credit and liquidity risks than ever before.
May 2020 by Brian Haughey
Living in an unprecedented interest-rate environment, bond investors probably face more interest-rate, credit and liquidity risks than ever before.
Top Taxable Bond ETFs
March 2020 by Charles Rotblut
The performance of taxable bond ETFs can be affected by interest rate changes or anticipated changes and shifting credit quality tolerances.
March 2020 by Charles Rotblut
The performance of taxable bond ETFs can be affected by interest rate changes or anticipated changes and shifting credit quality tolerances.
How Big of a Concern Is the Inverted Yield Curve and Negative Interest Rates?
November 2019 by Brian Haughey
Inverted yield curves can precede a recession, and negative interest rates remove a traditional income source for risk-averse investors. Find out if you need to take action.
November 2019 by Brian Haughey
Inverted yield curves can precede a recession, and negative interest rates remove a traditional income source for risk-averse investors. Find out if you need to take action.
Low Interest Rates Are Impacting Individual Investors’ Portfolio Allocations
November 2019 by Charles Rotblut, Matthew Bajkowski, Ryan Reeh
A survey of AAII members brought out a range of opinions on where rates are headed and insights into what they are specifically doing about it.
November 2019 by Charles Rotblut, Matthew Bajkowski, Ryan Reeh
A survey of AAII members brought out a range of opinions on where rates are headed and insights into what they are specifically doing about it.
A Fresh Look at Defined-Maturity Bond Funds
September 2019 by Charles Rotblut
Defined-maturity funds seek to strike a middle ground between bonds and bond funds: They mature on a specified date and return capital to shareholders, but they are also professionally managed and benefit from economies of scale.
September 2019 by Charles Rotblut
Defined-maturity funds seek to strike a middle ground between bonds and bond funds: They mature on a specified date and return capital to shareholders, but they are also professionally managed and benefit from economies of scale.
Challenge Your Perspective on Bonds
July 2019 by Hildy Richelson, Stan Richelson
A look at an unconventional bond strategy that focuses on cash flow and is designed to reduce risk, taxes, fees and bad timing.
July 2019 by Hildy Richelson, Stan Richelson
A look at an unconventional bond strategy that focuses on cash flow and is designed to reduce risk, taxes, fees and bad timing.
Bond Yields' Role as a Recession Warning Signal
May 2019 by Charles Rotblut, Campbell Harvey
An interview with the professor who developed the yield curve model for forecasting recessions.
May 2019 by Charles Rotblut, Campbell Harvey
An interview with the professor who developed the yield curve model for forecasting recessions.
Bond Convexity: What Is It, and Why Should You Care?
May 2018 by Brian Haughey
A bond’s price rises at an increasing rate as its yield falls, but its price falls at a decreasing rate as its yield increases.
May 2018 by Brian Haughey
A bond’s price rises at an increasing rate as its yield falls, but its price falls at a decreasing rate as its yield increases.
Follow the Fed, but Be Smart About It
April 2015 by Gerald R. Jensen, Robert R. Johnson, Luis Garcia-Feijoo
Small-cap stocks thrive during periods of expansive monetary policy, while returns for large- and small-cap stocks are lower during restrictive periods.
April 2015 by Gerald R. Jensen, Robert R. Johnson, Luis Garcia-Feijoo
Small-cap stocks thrive during periods of expansive monetary policy, while returns for large- and small-cap stocks are lower during restrictive periods.
Why Buy Bonds If Interest Rates Will Rise?
May 2013 by Hildy Richelson, Stan Richelson
Starting a bond ladder creates income now and produces cash flow that can be used to reinvest when interest rates are rising.
May 2013 by Hildy Richelson, Stan Richelson
Starting a bond ladder creates income now and produces cash flow that can be used to reinvest when interest rates are rising.
Deficits, the Fed, and Rising Interest Rates: Implications for Bond Investors
June 2010 by Joseph H. Davis
Making your bond portfolio more, not less, diverse is the best strategy given the uncertain outlook for interest rates.
June 2010 by Joseph H. Davis
Making your bond portfolio more, not less, diverse is the best strategy given the uncertain outlook for interest rates.
Don’t Fight the Fed: Interest Rates and Their Impact on the Stock Market
May 2009 by Sam Stovall
What is the one thing an investor should monitor in order to gauge the health of the economy and the direction of the stock market? Interest rates. A look at how they affect stock prices.
May 2009 by Sam Stovall
What is the one thing an investor should monitor in order to gauge the health of the economy and the direction of the stock market? Interest rates. A look at how they affect stock prices.