Bank of America Recommends These Stocks That Have Thrived in Past Rate-Hiking Cycles
The bank says quality stocks are likely to continue leading amid the possibility of further Federal Reserve rate hikes, while value stocks could accelerate as profits grow.
Bank of America is highlighting a group of stocks that have historically performed well during past interest rate-hiking cycles, according to a report from CNBC.
The bank said quality stocks should 'continue to lead given the likelihood of more Fed hikes,' pointing to a pattern in which companies with strong balance sheets and stable earnings have tended to outperform during periods of rising rates.
Value Stocks Could Also Gain
According to the report, Bank of America also sees potential for value stocks to accelerate as corporate profits grow, suggesting a broader opportunity beyond just quality-focused names. The bank's recommendation reflects an effort to position investors ahead of potential further monetary tightening by the Federal Reserve.
The report does not specify particular stock tickers or sectors singled out by the bank, nor does it provide a timeline for anticipated Fed rate decisions.
Sources
- These stocks have thrived during past rate-hiking cycles. Bank of America says buy them now — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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