Money Talks Podcast: How do fluctuating interest rates affect our personal finances?
Is it time to relook your investment portfolio and loans in 2024?
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The US Federal Reserve hiked interest rates four times in 2023 and at least three cuts are expected this year. How do fluctuating interest rates affect our expenses and investments?
Eddy Loh, Chief Investment Officer of Maybank Group Wealth Management gives an overview of 2024.
(In the 70s) when inflation was very high, the Fed had to hike interest rates to tame inflation ... Once they saw inflation coming off, they cut interest rates and that led to a resurgence of inflation.
On what to do when interest rates fall:
I think it's time to really redeploy some of this cash into bonds and equities ... You want to have more exposure into investment grade bonds, when the default risk tends to be a bit lower versus high yield credit.
Jump to these key moments:
- 0:38 GST increase, $500 CDC vouchers, BYD sales
- 6:14 How do interest rates affect investments and loans?
- 10:19 US Fed rate cuts in 2024
- 14:13 Who benefits from falling interest rates?
- 17:58 Change in investment strategy
- 23:56 Refinancing loans
Source: CNA/ta
