Investors are hoping for a more stable 2021 after last year's economic downturn. Financial experts say they just might get it.
The pandemic, shutdowns, and economic fallout made for a roller coaster 2020. However, with inflation under wraps and the Fed not raising interest rates, 2021 may be more stable. That's good news for borrowers. However, it’s not so good for savers.
“You need to invest more aggressively,” Bankrate's Chief Financial Analyst Greg McBride advises those looking to save. “Favoring things like the stock market or real estate. Yes, you do have some risk, but investors have been rewarded for their patience and discipline over the long term.”
McBride believes the economic recovery is likely to kick into a higher gear during the second half of the year, as more Americans get vaccinated.
As for mortgage rates, McBride says they'll start the year low, then gradually rise. He also thinks rates for personal loans and student loans will remain low.