Inflation’s impact on the stock market
Stocks can generally act as a buffer against the long-term impacts of inflation.
Like stocks, rising interest rates are a risk to bonds. The conventional wisdom says that when rates rise, bond prices fall. A series of expected rate hikes this year may alarm investors but may only have a minor effect on buy-and-hold investment strategies. In an uncertain rate environment, the best way to manage a rising rate market is with a diversified portfolio.
This information is general in nature and is not intended to be tax, legal, accounting, or other professional advice.
The information provided is based on current laws, which are subject to change at any time, and have not been endorsed by any government agency.
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