Bankrate Inc


How to Profit on the Fed's Latest Rate Hike

The Fed just announced it's raising interest rates by one quarter-point for the second time this year, bringing rates above 1% for the first time since 2008 – which could hurt your portfolio.

So, there are two things you should do to make some real money – and protect what you have, too.

The first helps you lock in steady income every month.

The second offers you unlimited profit potential – with limited risk.

So this is the perfect time to brush up on a technique I first told you about last September, ahead of the last rate hike.

It's been making us money ever since, and this time around it could be even better...

Global Markets

Rate Hike Briefing: Here's What Those 25 Points Mean for You

Now that the dust has settled after the Fed's much-bruited big move, it's time to take a step back and see what, exactly, happened.

Spoiler alert: We haven't yet reached the breaking point, and we're still in a bubble. Markets shrugged off the second consecutive quarterly interest rate hike by the Fed last week while signs of excess abounded in the markets.

And that means individual stock and bond investors would do well to be wary.

Here's what to watch out for…


Yellen’s Next 0.25% Rate Hike Could Destroy This Industry

During the zero-interest-rate years, the markets tended to react to any positive news in the economy by heading down in a "good news is bad news" syndrome. Traders and investors only managed to shake this over the last year.

Events have shown that the markets are moving on economic optimism now and can therefore handle interest rate normalization. What's more, the Fed has been pretty transparent about its plans to hike rates in the face of stronger economic and employment data and rising inflation, so last week's rate hike was largely priced in.

So "good news is good news" again…

…unless you happen to be invested in one $570 billion sector. It might not survive the next Fed move toward normalization – a move I'm certain is coming this year.

In fact, this industry could be another 0.25% rate hike away from exploding altogether...

the fed

Will Major Geopolitical Tension Change the Fed Rate Hike Forecast?

How has the Fed rate hike forecast changed in the wake of the Paris attacks?

After all, not only have the atrocities in France worsened geopolitical and global economic tensions lately, but so has Japan's re-emergent recession and the continued crash in commodities here at home.

Here's what to expect from the Fed in December, including more on the three upcoming crises that will factor into Janet Yellen & Co.'s decision...

U.S. economy

Gallup CEO Just Outted Government's False Unemployment Rate

The government's official unemployment rate is "a Big Lie," according to Jim Clifton, the CEO of 80-year old analytics firm Gallup. In a Feb. 3 op-ed, Clifton slammed the White House, Wall Street, and the media for celebrating about how unemployment is "down" to 5.7%.

Of course, here at Money Morning, we've called the "official" unemployment numbers cooked all along.

It's a good thing that Clifton is onboard with us – the more the merrier.

We want Americans to know there's a reason why they haven't "felt the recovery." Check out this breakdown...

Inflation and Commodity Spikes Spur Australian Rate Increase to 7.25% 

By Mike Caggeso Associate Editor The Reserve Bank of Australia raised its benchmark interest rate to 7.25% – the highest rate in 12 years and the second rate increase in four weeks – in an effort to bat down the commodity-driven inflation spell that’s hampering economies around the world. It’s the 12th consecutive quarter-point rate […]

Read More…

Super-Sized Rate Cut Spurs Super-Steep Rally; Dow Soars Nearly 336 Points

By Jason Simpkins Staff Writer When it came right down to it yesterday (Tuesday), U.S. investors awaiting a central bank decision on short-term interest rates investors were expecting the standard Value  (investing) Meal. But U.S. Federal Reserve policymakers surprised them with the Happy Meal instead. The result: A Super-sized stock surge, representing the biggest single-day […]

Read More…

India's Richest Realtor Lobbies For a Rate Decrease Despite Strong Growth

By Mike Caggeso Staff Writer A decline in housing prices in India have led billionaire investor Kushal Pal Singh, the chairman of DLF Ltd., India’s biggest real-estate developer, to call on the Reserve Bank to lower interest rates. According to Reuters India, Singh told reporters that “because of high mortgage rates and monetary policy, the […]

Read More…