Which US sectors will benefit from rising rates?

Fed expected to raise rates twice

clock • 2 min read

Many expect the new US presidency's economic policy to be more inwardly focused. Huge federal spending programmes in infrastructure are expected, together with tax cuts for corporate earnings, with both measures to be financed by a federal deficit.

The US economy is significantly ahead now in its cycle compared to Europe and Japan.  The Federal Reserve has entered a new cycle in which we expect to see several rate increases, with the market already pricing in two rises. US economic growth and the labour market are sufficiently strong to warrant this.  President Trump's fiscal policy may therefore arrive in a rising interest rate cycle. Companies in infrastructure, transportation, biotech and industrials sectors may find this new economic environment attractive, as well as companies, typically smaller, with strong economic exp...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

JP Morgan AM's Karen Ward: Investors should not 'trade' the US election
US

JP Morgan AM's Karen Ward: Investors should not 'trade' the US election

Focus on policy impact on inflation

Valeria Martinez
clock 14 March 2024 • 2 min read
Royal London AM launches Irish-domiciled US Equity fund
US

Royal London AM launches Irish-domiciled US Equity fund

Managed by Chris Parr

clock 13 March 2024 • 1 min read
LGIM CIO Laud: Magnificent Seven could be reaching bubble territory
US

LGIM CIO Laud: Magnificent Seven could be reaching bubble territory

Favours thematic approach to AI

Valeria Martinez
clock 11 March 2024 • 2 min read
Trustpilot