Dusseldorf On both sides of the Atlantic, central banks are raising interest rates to combat persistently high inflation. In the euro area, the inflation rate rose by 8.9 percent in July compared to the same month last year – to a new record high. Inflation in the US climbed to 9.1 percent in June.
And while the ECB raised the key interest rate to 0.5 percent for the first time in eleven years, interest rates in the USA are already significantly higher – in a range of 2.25 to 2.5 percent since the last Fed meeting on Wednesday.
But the fight against inflation has its price: higher interest rates cause the economy to cool down, economic growth is slowed down and the danger of a recession increases. These are extremely bad conditions for the stock market.
Jan Altmann from the information portal JustETF explains in the new episode of Today Extended why he believes it is worth pursuing a passive investment strategy and investing in ETFs, for example, even in times of crisis. In an interview with host Anis Micijevic, he also gives some tips on how investors can diversify their portfolios in times of interest rate turnaround.
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More: You can hear the first part of the conversation with Jan Altmann from the information portal Just ETF here.
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