When the U.S. central bank raises interest rates and keeps them elevated, investors should position toward must-buy income stocks to buy. Risk-free cash invested in various funds will pay close to the Fed Funds rate. When the next set of economic data confirm that inflation is persistent, yet the job markets are strong, it will keep borrowing costs high.
Investors should accumulate companies that pay a dividend income. That income, plus the upside from these stocks’ potentially rising price, should return more than 5%.
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