TexasEscapes.com HOME Welcome to Texas Escapes
A magazine written by Texas
Custom Search
New   |   Texas Towns   |   Ghost Towns   |   Counties   |   Trips   |   Features   |   Columns   |   Architecture   |   Images   |   Archives   |   Site Map


Columns

Counties
Texas Counties

Texas Towns
Texas Towns


Columns | Go Far With Kovar

How to invest for rising interest rates

by Taylor Kovar

July 13, 2022

Hi Taylor: Lots of variables to track in our current economy, but I'm wondering what you think about ways to invest while interest rates are rising. Rate hikes seem like the only sure thing right now, so how does the modern investor factor that in? - John

Hi John:
Solid, timely question. You should never take a break from putting your money to work, so it's all about adjusting to meet the situation. Rising rates hurt in some ways and help in others, meaning you've got opportunities no matter what's going on. Here are a couple of options that should be on your radar.

1. Quality stocks. It's not like you should be buying bad stocks when rates are down, but certain shares will fare better than others as the fed does its thing. For example, an overleveraged company with a great product struggles more with rate hikes than a company with big cash reserves. That might not be something you think about on a typical stock trading day, but it's worth considering if you're trying to stay ahead of interest. I always tell people to invest in companies they love, and that approach holds true no matter what APRs are doing. At this moment, when you're looking over all the businesses you support, keep an eye out for which ones have more cash in the bank.

2. Banks. Who's going to make the most money off of higher interest rates? The companies charging interest, of course! While borrowing takes a bit of a dive when rates go up, it doesn't stop altogether and the increase in interest revenue usually looks good on paper for the lenders. Aside from the big banks you know about, this could be the moment when we see one of the smaller, alternative lending companies surge after such a long stretch of lower rates. Lots and lots of banks out there for you to choose from as an investor.

3. Real estate.
It's a bummer when you have to accept a high mortgage rate, but that doesn't diminish the overall value of the property. Home sales are slowing as we speak, so prices won't be rising as they had been for the foreseeable future. Don't get caught up thinking you need to buy a house or a rental property when interest rates are low to make it a worthy investment. Real estate can be worth owning, as long as you can afford the property you invest in.

Investing is what I do, so rising rates don't scare me or make me nervous about the days ahead. It's simply time to adjust your strategy and make good decisions. Good luck!


Taylor Kovar July 13, 2022
More "Go Far With Kovar"



Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.


Texas Escapes Online Magazine »   Archive Issues » Home »
TEXAS TOWNS & COUNTIES TEXAS LANDMARKS & IMAGES TEXAS HISTORY & CULTURE TEXAS OUTDOORS MORE
Texas Counties
Texas Towns A-Z
Texas Ghost Towns

TEXAS REGIONS:
Central Texas North
Central Texas South
Texas Gulf Coast
Texas Panhandle
Texas Hill Country
East Texas
South Texas
West Texas

Courthouses
Jails
Churches
Schoolhouses
Bridges
Theaters
Depots
Rooms with a Past
Monuments
Statues

Gas Stations
Post Offices
Museums
Water Towers
Grain Elevators
Cotton Gins
Lodges
Stores
Banks

Vintage Photos
Historic Trees
Cemeteries
Old Neon
Ghost Signs
Signs
Murals
Gargoyles
Pitted Dates
Cornerstones
Then & Now

Columns: History/Opinion
Texas History
Small Town Sagas
Black History
WWII
Texas Centennial
Ghosts
People
Animals
Food
Music
Art

Books
Cotton
Texas Railroads

Texas Trips
Texas Drives
Texas State Parks
Texas Rivers
Texas Lakes
Texas Forts
Texas Trails
Texas Maps
USA
MEXICO
HOTELS

Site Map
About Us
Privacy Statement
Disclaimer
Contributors
Staff
Contact Us

 
Website Content Copyright Texas Escapes LLC. All Rights Reserved