The Federal Reserve just made it four.
Specifically, policymakers on the Federal Open Market Committee voted to raise short-term interest rates by another quarter-point to a range of 1% to 1.25%.
The first hike of this campaign was back in December 2015. It was followed by additional hikes in December 2016 and March of this year.
The rate increases are helping to (finally) move rates on select savings products higher.
But bank savings accounts are still only yielding an averAi??age of around 0.73%, while 1-year Certificates of Deposit (CDs) are only paying around 1.36%, according to Bankrate.com.
Money market mutual funds are only yielding around 0.46%, too, according to iMoneyNet. I donai??i??t know about you. But I canai??i??t live off those kinds of paltry rates, and the 1.9% indicated dividend yield of the SPDR S&P 500 ETF (SPY, Rated ai???Bai???) isnai??i??t much better.
The good news? The Fed hiking campaign IS creating huge new profit opportunities in select investments. But many investors donai??i??t know what the heck to buy (or sell, for that matter) because until a few months ago, the Fed hasnai??i??t been in rate-hiking mode since back in 2004-2006!
That lack of knowledge and experience about Fed cycles is precisely why I recently created a blockbuster investor education course called How to Pile Up Profits from the Greatest Interest Rate Cycle in 5,000 Yearsai???. It covers everything you need to know about how rising rates impact your stocks, bonds, ETFs, real estate investments, and personal financial products.
Plus, it gives you access to a special report containing specific investment recommendations. Those picks are designed to help you generate significant profits from this weekai??i??s hike — and every other one that follows it.
One of those investments just surged more than $9 in a few days ahead of the Fed meeting, and Iai??i??m expecting even larger moves down the road.
You can enroll immediately in the course … before the NEXT Fed rate hike … by clicking here.
Hesitant to take that step? Thatai??i??s fine. But I urge you to keep one thing in mind: Four Fed rate hikes worth 1 percentage point may sound like a lot. But it isnai??i??t at all in the grand scheme of things.
Consider this: In the last Fed hiking cycle in the mid-2000s, the central bank raised rates a whopping 17 times to 5.25% from 1%. Thatai??i??s 4.25 percentage points in all. The average for every hiking cycle since the mid-1970s is an even-larger 6.6 percentage points.
In other words, there could be a lot more action coming from the Fed than Wall Street thinks … and a lot more profits to be had for savvy interest rate investors! So think about signing up for my course, and in the meantime, Iai??i??ll keep you abreast of all the latest Fed moves.
Until next time,
Mike Larson is a Senior Analyst for Weiss Ratings, and is also the creatorAi??of the courseAi??”How to Pile Up Profits from the Greatest Interest Rate Cycle in 5,000 Years“. A graduate of Boston University, Mike Larson formerly worked at Bankrate.com and Bloomberg News, and is regularly featured on CNBC, CNN, Fox Business News and Bloomberg Television as well as many national radio programs. Due to the astonishing accuracy of his forecasts and warnings, Mike Larson is often quoted by the Washington Post, Chicago Tribune, Associated Press, Reuters, CNNMoney and many others.