Finance stocks have come into the limelight recently, with the much-awaited Fed rate hike just around the corner. Any increase in rates will likely benefit the sector the most.
Notably, on Nov 17, 2016, testifying before the Joint Economic Committee of Congress, Federal Reserve Chair Janet Yellen signaled that the Fed may raise interest rates “relatively soon.†She said “the case for an increase in the target range had strengthened.â€
Moreover, post the Presidential elections, finance companies have regained confidence about their prospects because of Trump’s bias for higher interest rates and lesser financial regulations.
Why the Finance Sector Seems to be a Good Pick Now
Various industries within the broader Finance sector, including banking, insurance and brokerage, typically benefit from a higher rate environment.
Finance Sector Price Index
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