Forget Rate Hikes. These 3 Vanguard ETFs Could Be Better Positioned for What Comes Next.
It looks like we're headed into a "higher for longer" rate regime. This trio of Vanguard ETFs can help.
Overview
At the beginning of the year, the market was pricing in multiple rate cuts from the Federal Reserve. Thanks in large part to the Iran war and the subsequent higher inflation that came with it, the market is now pricing in the likelihood of rate hikes before the end of the year.
At its July meeting, three of the Fed's voting members wanted to raise rates by a quarter-point. Inflation looks like it will remain well above the target for the foreseeable future, and the decision may come down soon saying that rates aren't restrictive enough.
Details
A lot of people's portfolios are still positioned for rate cuts, and that could be a problem. If conditions are about to get tighter over the next 6 to 12 months, it might be time to prepare for it.
Source
Originally published at www.fool.com.