The recent Fed hints at ending QE means rising interest rates. It also means big changes in the markets. Here are several ETFs to protect yourself and invest in as interest rates rise.
Let’s keep this simple. Back in September the Federal Reserve announced QE3 which expanded its bond buying program to $85 billion per month and added mortgaged backed securities to its buy list. This did two things:
- Lowered long-term interest rates by pushing bond prices higher (explained here)
- Supported the mortgage market
This was done to spur economic growth and hiring. It wasn’t going to last forever, either, and the Fed is already planning the unwind. Continue Reading…