How investors can prepare for lower interest rates: It’s ‘like getting a haircut,’ advisor says
Federal Reserve chair Jerome Powell on Friday gave the clearest indication yet that the central bank is likely to start cutting interest rates, which are currently at their highest level in two decades.
If a rate cut comes in September, as experts expect, it would be the first time officials have trimmed rates in over four years, when they slashed them to near zero at the beginning of the Covid-19 pandemic.
Investors may be wondering what to do at the precipice of this policy shift.
Those who are already well diversified likely don’t need to do much right now, according to financial advisors on CNBC’s Advisor Council.
“For most people, this is welcome news, but it doesn’t mean we make big changes,” said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California.
“It’s kind of like getting a haircut: We’re doing small trims here and there,” she said.