How to invest for the next decade with New York Life’s Lauren Goodwin from Future Proof 2024

Longer-term investors should ignore the daily racket surrounding interest rates and focus on generating income over the next 10 years, according to New York Life economist and chief market strategist Lauren Goodwin. It’s easy to get caught up in the day-to-day fodder, especially during a week like this one, according to Goodwin, who spoke to CNBC Pro in a special discussion from the sidelines of the Future Proof Conference in Huntington Beach, California. The Fed is set to cut rates for the first time in four years on Wednesday and an election looms in November. (Watch the full discussion above.) “If you’re looking at a five-, 10-,15-year investment horizon, then the ebbs and flows of the Fed cutting rates or an election cycle don’t matter a whole lot,” Goodwin said to host Dominic Chu . Where to invest: Bonds and AI The strategist posits that over the next decade, interest rates are likely to remain elevated as neither party takes on deficit spending. To take advantage of this backdrop, Goodwin suggests focusing on income strategies through both investment grade corporate and municipal bonds, with the latter tied to the buildout of artificial intelligence infrastructure as well. “We see a very attractive potential opportunity in the municipal bond space there,” she said. “So depending on the investor, what they’re looking for, there is a way to balance this medium term potential for interest rate risk while still locking in higher rates.” Goodwin also sees investing around AI as a smart strategy long term, with large investments in the area continuing. We’re “seeing a huge investment in the foundational layer of AI, that’s the Magnificent Seven, the chip makers, and [it’s] only the early stages of infrastructure,” she said. “But because we see not only the government and companies, but also the consumer use case for AI, we expect that investment to continue. What’s likely to happen, though, is it’s going to broaden.”