- An interest rate hike is a question of “when” not “if”.
- Experts agree: Plan Ahead Now
- These sturdy stocks should weather the hike when it happens.
Another Federal Reserve meeting has arrived, and the political environment is blistering. Can your portfolio withstand the heat? Grab these 3 stocks now before things get hotter…
The Republican Convention has passed, and the dems take the big podium this week. While the economy wasn’t exactly front and center last week and may be a sideshow this week, the topic is critical as we head into the final months of the campaigns.
Bottom line: If you’re not thinking longer-term about the possibility of the Fed raising interest rates (if not prior to the election, definitely afterward), then you’re risking too much.
The last Fed rate rise was in December, when the benchmark rate went from a range of 0.25%-0.50%, and it hasn’t moved since that point. But get a load of this…
Since December, three key data points have come and gone:
- The markets have roared ahead, with the Dow Jones Industrial Average and S&P 500 both ahead over 6% year to date.
- The June jobs report, which featured the addition of 287,000 jobs, showed far more strength than expected.
- Britain voted to leave the EU, yet the economy and markets shrugged it off.
Many experts agree that it’s unlikely a rate hike will occur this round because the economy continues to chug along, the markets show no sign of caving, and the Fed has another two months to contemplate a raise before the next meeting (September 20-21).
While we wait, get ahead of the curve. Fact is that even if the Fed leaves rates unchanged in September, it will undoubtedly happen at some point—and you need to be prepared.
What to do? At least three sectors in the economy look attractive in the face of interest rate increases, and each contains a solid pick for consideration.
Let’s take a look at these stocks…