Rate Hike Poses Questions

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    Investors need to ask three key questions in the wake of the U.S. Fed’s interest rate hike, says Nigel Green, founder and CEO of deVere Group. “This rate rise by the world’s defacto central bank confirms that we’re in a new era of higher inflation and higher interest rates. Investors will now need to position themselves accordingly,” he says. However, while rates are beginning to normalize, it may take a couple of years or so to get there and when they do the global economy will look very different to how it does today. Investors now need to determine if their portfolios are truly diversified; if they are prepared for dollar swings; and if they are prepared for inflation. “Investors who answer these questions honestly and then take affirmative action will find that they do not need to accept lower returns in this new era of higher rates and inflation,” he says.