Managing your investment portfolio is not easy. It requires a constant awareness of market conditions plus an understanding of how a change in interest rates may affect performance of your investment strategies. You can’t manage your money successfully if you don’t keep an eye on interest rates. Here are some important things to pay attention to:

Other People’s Money
The Federal Reserve is the national bank of the United States. It controls the money supply and thereby affects the cost and availability of money, interest rates and available credit. U.S. banks borrow money from the Federal Reserve to lend to their customers. The interest rate charged by the Federal Reserve is called the Discount Rate. The higher the Discount Rate, the less money banks are willing to borrow and push into the economy. If too little money is pushed into the economy, consumers and businesses may have less money to spend on goods and services.

Current Interest Rate Forecast
What goes down must come up… and, conversely, what goes up eventually will come down. Interest rates just tend to work that way. So, you must pay attention. But do not be too quick to make changes. Sure, rising interest rates can hurt some investment strategies, but rising rates are a boon to some investors. The goal is to identify what changes in interest rates mean to you and your portfolio.

Time Lines
Over time your financial goals, the amount of time you can spend on your investments and your tolerance for risk will change. Today, most investors understand this and realize the value of diversifying their investment assets among stocks, bonds and cash equivalents. Not only can you diversify across asset classes, you can diversify across investment strategies. The idea is to combine and implement the appropriate strategies in the right proportion to insulate your investment portfolio from the impact of rising (or falling) interest rates.

Investment planning strategies should never be implemented in a knowledge vacuum. Your Peoples Bank financial advisor can help you learn how to diversify across investment strategies by choosing and implementing complementary strategies that balance risk and reward within your comprehensive financial plan. Don’t hesitate to call with questions. We’re always ready to help.

Contact our Peoples Investment Services, Inc. representative at 828-464-5620 or

This material was prepared by Raymond James for use by David Brown, Registered Principal of Raymond James & Associates, member New York Stock Exchange/SIPC or Raymond James Financial Services, Inc. Member FINRA/SIPC.