High interest rates drag down returns in 2022, long-term investors advised to stay the course
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Interest rates staying high has dragged down returns for stocks and bonds in 2022. Portfolios could lose more value if rates stay high.
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Rate hikes by central banks like the Bank of Canada have spurred the worst bond sell-off in a generation.
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Dividend stocks and real estate investments have also struggled with higher rates. Tech stocks are faring better.
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Economists think rate hikes may have peaked, but central bankers are still striking a hawkish tone.
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Long-term investors should stay diversified and not try to time rate cuts. Markets may be volatile until inflation slows.