Rates may go up sooner

Thanks.

HI there,

Yes - this was a risk and one that the markets were already pricing in. It is why high growth stocks have struggled lately and financials led by banks and insurers have done quite well this year. In a rising rate environment, they are likely to continue outperforming. An argument can also be made for gold stocks which have historically done well in such an environment.

Consumer staples are also likely to outperform because as rates rise, consumers have less discretionary income and less to spend on discretionary items. Consumer staples on the other hand - they always need.

Mat