Kevin O'Leary warned against interest rate optimism for March and May — points to 'magic' rate cuts right before elections. Here's what that could mean for your money

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With headline inflation rates in the U.S. dropping substantially from their 2022 peak, many investors are looking forward to interest rate cuts from the Federal Reserve. But according to “Shark Tank” star Kevin O’Leary, the path of the central bank may not be as straightforward as some expect.

In a February interview with Fox Business, O’Leary expressed skepticism regarding the widespread expectation of imminent rate cuts.

“This puts a nail in the coffin of anybody thinking they're going to cut rates in May, you have a 75% [probability] there of people betting that they'll cut rates. In fact, the market thinks there's three cuts, 25 [basis points] each, coming right after March,” he said.

In fact, both Goldman Sachs and UBS recently updated their forecasts, now expecting the Fed to start cutting interest rates in May, not March. Some experts now believe they will begin in June.

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As far as subsequent rate cuts this year, O’Leary noted: “So the pressure politically on the Fed cutting is going to be very high, particularly as you roll into Q3, when it's magic to have a rate cut right before you're in the ballot booth.”

While inflation remains relatively high, here are three solid ways to invest amidst all this interest-rate speculation.

Real estate

Real estate is a well-known hedge against inflation.

But stubbornly high home prices and mortgages rates, as well as the hassles that come with being a landlord, can make the prospect of buying property less appealing for many would-be investors.

These days, however, you have a variety of options to invest in real estate without buying a house or taking on the role of landlord.

But, First National Realty Partners* is a strong option for accredited investors seeking superior risk-adjusted returns in the grocery-anchored necessity-based retail space.

While commercial real estate has outperformed the S&P 500 over a 25-year period, it's typically been reserved for a few elite investors. But First National Realty Partners allows you to access institutional-quality commercial real estate investments* — without the leg work of finding deals yourself.

Read more: Generating 'passive income' through real estate is the biggest myth in investing — but here's 1 surefire way to do it with as little as $10

Gold

Investing in gold is often considered the go-to inflation-fighting investment in turbulent economic times.

It can’t be printed out of thin air like fiat money, and its value is largely unaffected by any economic twists and turns.

One way to invest in precious metals that also provides significant tax advantages is with a gold IRA through American Hartford Gold.* This retirement account can help you stabilize your finances by allowing you to invest directly in physical precious metals rather than stocks and bonds.

When you join American Hartford Gold, you’re eligible to get up to $10,000 in complimentary silver and a free investor guide,* both aimed at helping in the protection and growth of your wealth.

Artwork and other alternatives

You might think that investing in fine art by the likes of Banksy and Andy Warhol is only an option for the ultra-rich.

But with an investing platform called Masterworks, you can invest in iconic artworks* too, just like billionaires Jeff Bezos and Peggy Guggenheim.

On average, contemporary artworks appreciate in value by 14% per year, which is significantly higher than the average returns of 10.2% you’d see with the S&P 500.

And investing with Masterworks* lets you bypass a lot of the drawbacks of art investing — you won’t need to scour garage sales looking for a lost work by a master, and you won’t have to scramble to find a buyer if you need to sell your shares fast.

If you have a range of interests, from cryptocurrency to art to and real estate, Yieldstreet* allows accredited and non-accredited investors alike to have the opportunity to invest in a broad range of assets.

Yieldstreet makes it simple to invest outside of the stock market with its professionally vetted investment opportunities. Plus, they offer accessible minimums and term flexibility.

You can create your Yieldstreet account* by providing some information about yourself and linking your bank account.

Then, start investing, track your performance and earnings and witness your wealth evolve.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.