How to adjust your portfolio as the Fed hikes interest rates

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Financial gurus offer advice to investors amid market turbulence following the Federal Reserve's latest 0.75 percentage point increase in interest rates.

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The central bank announced its 4th consecutive three-quarters of a percentage point increase in interest rates as it works to combat inflation.

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The most recent action was taken after the U.S. Department of Labor reported that annual inflation increased by 8.2% on a 12-month basis in September

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Government bond yields have also been impacted by the Fed's run of interest rate increases, leading to the so-called inverted yield curve

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the policy-sensitive 2-year Treasury paid higher than the 10-year Treasury, which paid 3.986%. It was roughly 4.468%.

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He said that short-term yields have increased as a result of the Fed's "aggressive policy," which some investors are utilising as a location to "park capital" until volatility decreases.

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Higher yields for short-term bonds were another factor mentioned by Matthew Gelfand, a CFP and executive director of Tricolor Capital Advisors in Bethesda, Maryland

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In case interest rates continue to rise through 2023, Jon Ulin, a CFP and CEO of Ulin & Co. Wealth Management in Boca Raton, Florida

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which uses losses to offset profits, and switching to shorter-term bond allocations if the long-term bonds in your portfolio are down

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