Continued economic strengthening, concerns that inflation might rise in the future and a large amount of government debt are among the factors translating into increases in interest rates, with more likely to come.
Here are five questions that advisors – and their clients – might ask about rising interest rates:
1. Why are rates rising?
2. When will central banks raise their benchmark interest rates?
3. How long might the trend last and how high might rates go?
4. What are the economic risks surrounding higher interest rates?
5. What do higher rates mean for investors?
Read full story:
http://www.advisor.ca/advisors/news/industrynews/article.jsp?content=20100406_114242_8940
Peter Drake
Advisor.ca
Peter Drake is vice-president, retirement & economic research, for Fidelity Investments Canada. With over 35 years of experience as an economist, he leads Fidelity's research efforts in examining retirement in Canada today.
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