Thursday, December 15, 2016

what rising interest rates could mean

Stock market.  Stocks typically have performed well in the first year after an initial rate increase [which was last year], and the strength tends to persist in year two, albeit at a lessened pace.

Financial stocks.  A widening gap between what banks pay on deposits and charge on loans can help bank stocks.

Utilities stocks.  Utilities stocks tend to underperform, as investors shift to higher-yielding fixed income investments.

[via Schwab]

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