The Federal Reserve is increasing their benchmark federal funds rate which has the predictable effect of having industry analysts attempting to predict winners and losers. In reality, a rise in interest rate should really not have much direct effect on stocks. As you might expect, financial stocks – such as banks – would be expected to benefit from an increase. Other industries, such as real estate companies, utilities, and even some technology stocks tend to see a decrease in price as rates begin to rise. This occurs due to a variety of factors from investors shifting capital away from dividend yields to businesses seeing a higher cost to borrow money to fund their growth.
The stocks below show the possibility of being affected by rising interest rates. They vary by sector, but all are showing some fundamental, and in some cases, technical reasons for caution as investors move forward.
Click the "Continue to Slide #1" button to view the first company.
