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Special Report

Morningstar's Guide to Rising Rates

Morningstar analysts offer their takes on what higher rates could mean for investors.

With interest rates at near-zero levels, the Federal Reserve began to raise rates at the end of 2015. Since then, the Fed has boosted its benchmark rate six more times, and market watchers expect the Fed to boost rates yet again this week. In fact, the futures market is pricing in a 100% chance of a hike. Seems like a done deal.

What do ongoing rate hikes mean for investors? Cash holders are happy, as they're enjoying increased yields. Bond investors, however, have been none too pleased--at least not this year. Morningstar's long bond indexes are all down about 5% year to date. Shorter-maturity paper, meanwhile, is about flat.

We've compiled a series of articles and videos to help investors at all life stages and time horizons make sense of the impact rising rates may have on their investments and goals.

What Rising Rates Mean for Retirees
Christine Benz explains what rising rates may mean for everything from cash to bonds to stocks.

How Does the Fed Raise Interest Rates?
The mechanics are different post-financial crisis.

How Do Rising Rates Impact Stock Returns?
Predicting the winners and losers of the next rate hike is a difficult undertaking.

Short-Term Bonds Seeing Biggest Impact from Rising Rates
As the yield curve flattens, shorter duration bond funds are seeing a pretty significant hike in yield.

4 Short-Term Bond Funds to Calm Rising-Rate Jitters
Forget about calling the bond market bottom. These funds will let you rest easy.

3 Muni Bond Funds to Ease Interest-Rate Jitters
Our analysts think these holdings are resilient in the face of rising interest rates.

Individual Bonds: The Answer for Rising Rates?

Individual bonds can be held to maturity but have a few key drawbacks, too.