How investors can prepare for lower interest rates: It’s ‘like getting a haircut,’ advisor says

Investors, whether experienced or newcomers, continuously adjust their strategies based on changing financial conditions. As interest rates decrease, the return on most fixed-income investments also drops. However, several approaches can be prepared for lower interest rates:

1. Diversify Your Portfolio: Different asset classes perform differently depending on prevailing interest rates. Stocks, for example, could potentially benefit from lower interest rates as borrowing costs for companies become less expensive. On the other hand, fixed income assets like bonds tend to have lower yields