Stocks For Rising Rates

Good morning…

I have gotten a lot of questions about interest rates. Mostly from people with 30,000 square foot second homes (I kid my wealthy friends).

Some masked suit at Goldman Sachs was out mumbling the other day that The FED would be raising rates FOUR times this year.

The market has been pricing in higher rates for a few months based on the price action of high growth stocks and even crypto which have seen money come out.

This weekend I explained that.

So when Goldman came out with their FOUR interest raise drama call before the market, growth stocks actually stopped going down.

What I am watching now is the Monday low prices of those stocks – cloud stocks, software stocks and crypto. If these stocks break Monday lows, I would get even more defensive with my exposure to crypto short and medium term.

Of course, there are stocks and ETF’s that ‘tend’ to do well in rising interest rate environments and JC put together a blog post explaining it.

Here are the ETF’s…

My friend Ryan also looked back to find that the last 7 periods of rising rates was GOOD for stocks.

If you have a good financial advisor, ask them about this, and if you don’t it is another reason I always tell people to have a good financial advisor (or two).

Hope this helps.