Interest Rate Headwinds

Video Transcript:

Greetings from sunny Sarasota, Florida. Hard to believe we're coming down the home stretch for 2021.

It's been a very eventful year and a profitable year for investors. Extremely low-interest rates have caused real estate values to shoot up quite dramatically in all regions of the US, and really in all major countries of the developed world. This is a global real estate buying panic.

Meanwhile, Americans have a record amount of their net worth in the stock market. Much, much more exposure to stocks than ever before.

What comes next?

Our economy is growing. Unemployment is way down. And some price inflation is starting to appear.

Under these circumstances, it would be normal to see interest rates rise somewhat. Rising interest rates are usually a headwind for the price of stocks and real estate. This can happen quickly. There is a distinct chance of a quick drop in prices.

So our message remains the same. It's time to reduce debt, keep a cushion of low-risk investments, and remain cautious.

Please let us know if you have any questions. And as always, we appreciate your confidence in us here at Generations Wealth Planning. See you soon.