9 Best ETFs to Buy for a Recession
Regency Wealth Management partner, Mark Andraos, was recently featured in a U.S. News & World Report article titled “9 Best ETFs to Buy for a Recession.”
In the article, Andraos discussed the Federal Reserve’s cautious approach to cutting interest rates. He noted:
“This time around, the Fed must be careful not to cut rates too quickly. Lower rates lead to increased borrowing; increased borrowing leads to increased spending; increased spending may lead to higher inflation, which is what initially prompted the Fed to begin their aggressive rate hike campaign in early 2022.”
Andraos further explained the Federal Reserve’s strategy and what has historically worked for investors in similar environments:
“Typically, during a recession, the Federal Reserve looks to cut interest rates to stimulate economic growth, as low interest rates encourage borrowing. In a falling interest rate environment, longer duration bonds tend to outperform as yields and bond prices are inversely related.”
Read the full article and see all that Mark had to say!