Fed Rate Hikes Bring Uncertainty After Risky Pandemic Investments
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The Federal Reserve's interest rate changes impact the economy and stock prices, but predicting the timing is difficult.
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New "investment opportunities" like cryptocurrencies and meme stocks emerged during the pandemic, but most have since busted.
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Established investment providers like Vanguard weathered the downturn better than upstarts due to their caution and focus on existing clients.
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Low interest rates breed risky investments. Investors know downturns are inevitable but get swept up in bull markets.
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Investment providers who sell into prevailing market emotion can attract assets but often cannot retain customers when conditions change.