It’s been a tough year for utility stocks, with the sector down more than 10% as of early November. So, what’s behind the sell-off? There are a few factors at work. For one, interest rates have been rising, which makes utility stocks less attractive compared with other sectors. In addition, the Trump administration has been […]
What Etf Is Good For Rising Interest Rates
What Etf Is Good For Rising Interest Rates When interest rates are rising, investors may want to consider investing in exchange-traded funds (ETFs) that track bond indexes. This is because when interest rates rise, bond prices fall. So, by investing in an ETF that tracks a bond index, investors can minimize the impact of rising […]
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What Does Rate Hike Mean For Stocks
When the Federal Reserve raised the interest rates on Wednesday, December 14th, 2016, it was the first time since 2006. The hike was in response to the improving economic conditions in the United States. The Fed’s move signaled a vote of confidence in the American economy and indicated that the Fed expects to continue to […]
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What Happens To Bond Etf When Interest Rates Rise
When interest rates rise, the value of bond ETFs falls. Bond prices and yields move inversely; when interest rates go up, the price of bonds go down. This happens because investors can earn a higher yield on newly issued bonds, so they are less likely to buy older bonds that offer a lower yield. This […]
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What Etf Benefits With Rising Intetrst Rated
What ETF benefits with rising interest rates? Interest rates are on the rise and this is good news for ETF investors. Rising rates mean that the returns from bonds and bond funds will also be rising. This is especially good news for investors in ETFs that focus on bond funds. When interest rates are low, […]
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Stocks That Do Well When Interest Rates Rise
Interest rates have been slowly creeping higher in recent months, and there’s a good chance that they will continue to rise as the Federal Reserve continues to tighten monetary policy. This presents a potential problem for investors, as higher interest rates tend to hurt stock prices. However, there are a number of stocks that actually […]
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How Do Rate Hikes Affect Stocks
How Do Rate Hikes Affect Stocks Almost every time the Federal Reserve (Fed) raises interest rates, there is some discussion about how it will affect the stock market. After all, equity prices are highly sensitive to interest rates. When the Fed raises rates, it is essentially saying that the economy is strong enough to withstand […]
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