Stocks in the consumer discretionary sector also tend to perform
well in rising interest rate environments because of the strong economy that caused the increase.
«Small caps can do
well in a rising interest rate environment.
«We have done a lot of analysis, and we are very confident that a wide blend of alternatives will perform
well in a rising interest rate environment,» said Ben Rotenberg, a portfolio manager specializing in alternative investments for Principal Funds.
In addition, sectors that tend to perform
better in a rising interest rate environment are those with shorter term leases, such as apartments, hotels and SFRs, he adds.
Not exact matches
Although the
rise in interest rates is,
in many ways, confirmation of a
better economic
environment, it has prompted many economists to revisit their forecasts.
In the later stages of an expansion — where we are now — basic materials are a good play, as are financials in this rising interest - rate environment, which creates lucrative spreads for banks and financial services companie
In the later stages of an expansion — where we are now — basic materials are a
good play, as are financials
in this rising interest - rate environment, which creates lucrative spreads for banks and financial services companie
in this
rising interest -
rate environment, which creates lucrative spreads for banks and financial services companies.
Statistical analysis of the historical relationship between
interest rates and alpha supports the notion that hedge funds generally do
better in a
rising -
rate environment.
That's because banks have historically tended to do
well in rising rate environments, as they can benefit from making loans at higher
interest rates.
In this environment of modestly rising interest rates and fuller valuations, we believe innovative companies with the potential to disrupt existing industries, including in emerging markets, could fare particularly wel
In this
environment of modestly
rising interest rates and fuller valuations, we believe innovative companies with the potential to disrupt existing industries, including
in emerging markets, could fare particularly wel
in emerging markets, could fare particularly
well.
That's because banks have historically tended to do
well in rising rate environments, as they can benefit from making loans at higher
interest rates.
In this
environment, many of the assumptions of the past — house prices will always
rise,
interest rates will always fall, there's a
better job just around the corner — can no longer be counted on.
Discount callables are a
better choice when the investor believes volatility will be low but prefers more protection
in an
environment of
rising interest rates.
The variability of returns is expected to be greater than the index as the intent of the portfolio is to provide both protection
in rising interest rate environments as
well as ultimately provide a higher level of return through both income and capital appreciation.
This could be a
good play if
interest rates continue to
rise as Lifecos typically do
well in a
rising rate environment.
But those investments tend to work
well in recessions... not so much
in rising interest rate environment.
Gold can do
well in a
rising rate environment but it's the real
rate of
interest that matters.
In an
environment where
interest rates rise and inflation surprises to the upside, almost no asset class seems likely to do
well.
Direct recognition companies, which allow the margin
rate to be locked, tend to be favorable and illustrate
better in a higher
interest rate environment due to the fact that
rising loan
rates could exceed dividend crediting
rates fairly quickly.
The
best way to consolidate credit cards
in a
rising interest rate environment is with fixed -
rate credit card consolidation loans.
The under - performance stemmed from concerns about consumer spending maxing out last year, as
well as investor concerns about leverage levels
in an
environment of
rising interest rates.
In a
rising interest -
rate environment, ARMs can be a
good short - term option, particularly for homeowners who aren't buying their «forever home.»