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The investing world has changed dramatically over the last year. Since 2008, savers have endured yields at next to nothing. Last July, the Federal Reserve was forced to raise interest rates for the 11th time this year in response to elevated levels of inflation. Although the Consumer Price Index reports that inflation rates have fallen sharply from around 8 percent to 4 percent, it is likely the Federal Reserve will continue to raise its benchmark rates in order to reach its goal of a 2 percent inflation rate. This has benefited some and cost others.

Anyone holding onto bonds with maturity dates many years into the future quickly realized they were sitting on huge losses. Banks are the first group to come to mind. Some bought long-dated bonds in the hopes that interest rates wouldn’t go up for many years, if ever. Now that they have, these bonds have become significantly less valuable than they were, yielding half of what the same type of newly issued bonds are worth today.