Dear Quentin, I have a $1.5 million account with one of the major investment managers in the United States. In the fall of 2021, the stock market was weakening and the Federal Reserve was projecting that its benchmark rate would increase significantly from zero in the following months.
I contacted my account manager and asked what they were going to do in response to this news. I told him that I believed they should sell my investment in bonds and convert it to cash. I also suggested that the company liquidate some growth stocks and either keep the proceeds in cash or invest it in value stocks. This counselor told me that the company does not react to this kind of news for at least six months to ensure that it is a real trend. He also stated that they do not invest in bonds to make money. He said they only invest in bonds to reduce volatility. He followed this up by saying that the company did not think the Fed would raise the rate from zero to the then-projected 2.8% by the end of 2023. As an aside, they said, they generally do not in …
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I contacted my account manager and asked what they were going to do in response to this news. I told him that I believed they should sell my investment in bonds and convert it to cash. I also suggested that the company liquidate some growth stocks and either keep the proceeds in cash or invest it in value stocks. This counselor told me that the company does not react to this kind of news for at least six months to ensure that it is a real trend. He also stated that they do not invest in bonds to make money. He said they only invest in bonds to reduce volatility. He followed this up by saying that the company did not think the Fed would raise the rate from zero to the then-projected 2.8% by the end of 2023. As an aside, they said, they generally do not in …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]