Stocks in rising interest rate environment
For this reason, now is the time to begin preparing for this shift in the interest rate environment. (Check out How Interest Rates Affect The Stock Market for an introduction to this issue.) 1:50 Financials aren’t the only star performers in a rising rate environment. Consumer discretionary stocks also can see a bump. Improving employment, coupled with a healthier housing market, makes consumers more likely to splurge on purchases outside of the realm of consumer staples (food, beverages and hygiene goods).