What we are thinking
Attached is our latest piece reviewing what sectors do best in a rising rate environment. Dividend growers, technology and standard cyclicals like energy, finance and industrials are the winners.
The question is when will the market be in the clear from all the interim worries. Here is the fourth version of our thoughts as these worries continue to play out.
Debt ceiling. Cooler heads usually prevail but look out if not.
Supply chain disruptions. The extent of this is a serious unknown.
Inflation. This is a longer horizon worry
China. Bankruptcies, slowdowns, blackouts, muscle flexing but except for bankruptcy another longer term concern
Interest rates. Even a 10 year at 2% is way under the average of 5.97%
A slowing Fed. They are moving cautiously not slamming on the brakes
Growth stocks – not growing because rates are climbing above 0?
We are proceeding cautiously with a careful eye on opportunities.