This is why stock investors shouldn’t fear rising interest rates
Rising rates are not a problem for stocks right now, but they do create some level of concern in the market.
Strategists say Treasury yields are climbing on stimulus and the outlook for better growth, but if they increase too quickly it would hurt the stock market.
Investors should look at more cyclical sectors, including financials, as rates rise.
For now, interest rates are rising with the idea that inflation will also go higher.
But the alert right now is probably more like a smoke alarm and one burnt frying pan, rather than a house on fire.
“This is less about the absolute level of yields and more about the speed at which it takes to get there, and at this point, we’re not concerned with the speed,” said Julian Emanuel, chief equity and derivatives strategist at BTIG.