Bad News as Interest Rates Rising? Maybe Not for these 6 Businesses?
Nowadays, most of the countries are in a cycle of red hiking, which could last well into the bad news and good news. I'm going to tell you what kind of businesses will consider it bad news, and who will consider it as good news? By looking back at past cycles, we can easily find that certain businesses generally respond favorably to rising interest rates, while others suffer from it.
The 1st one, information technology companies are high growth businesses with little effects from interest rates. Rather, is driven by investments. Even so, at the beginning of the cycle, it companies will get better performance, not after higher rates. Applied.
Financials can profit from hiking interest rates, as Landers can raise interest rates on ball Rovers. However, along the time of race hiking, concerns about economic growth will race, and financials could take a height. Energy companies are supported by high oil prices, which help drive up inflation, a key factor in the interest rate policy. However, take it carefully. For these kind of businesses, the prices of oil and gas are fickle and rely on due politics. Communication service companies are a stable choice for investors.
But it doesn't include the new kinds of communication companies like Netflix, Amazon or Google, etc. Health care companies are stable too. People will not be mentally to spend their money for health care services. Whatever happens, life is more important than money.