Dividend-paying equities tend to be highly sensitive to interest rates. When interest rates spike, money managers generally move into safer assets like bonds to take advantage of their high-income potential, although the current market -- driven by the hype over artificial intelligence (AI) -- stands out as an anomaly.

The bigger picture is that with a series of rate cuts looming within the next 12 months, investors should be considering how to position their portfolios ahead of this event. Based on this theme, one strategy to consider is buying high-yield equities or an exchange-traded fund (ETF).

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Source Fool.com