Financial Focus: Time to put excess cash to work?

You’ll always want to base your investment decisions on your own needs and goals. But there may be times when you might consider adjusting your portfolio because of risks and opportunities. Now may be one of those times.

Here’s some background: In recent months, the Federal Reserve has raised short-term interest rates several times, and given its generally favorable outlook on the economy, it has indicated it may continue bumping up interest rates gradually over the next year or so. The Fed doesn’t control long-term interest rates, but these rates often follow the lead of short-term movements. However, longer-term rates haven’t yet risen as much as shorter-term ones, which means the difference between short- and long-term rates is relatively small, historically speaking.