Over the last year, some investors have been turning to cash investments. This is understandable considering that cash and equivalents are offering some of their best rates in over a decade. Yet while some amount of cash and equivalents can play an important role in any investor’s portfolio, don’t overlook the other investment opportunities that today’s higher rates could create.
As inflation edges closer to its 2% target rate and with interest rate hikes back on pause, investment professionals believe that today is a great time to take a second look at bonds. This is especially true for investors with a medium- to long-term investment horizon. Why? Two Reasons:
1) Bonds tend to outperform cash near peak rates
2) Bonds tend to outperform during a recession
See the full article from our partners at RBC Global Asset Management.