“Safe” Sectors Sinks Amid Rising Rates
Speaking of higher interest rates, high-yielding sectors of the stock market are beginning to feel the pain. Although they’ve held up well on a relative basis, as we tend to see in a bear market, they are still declining on an absolute basis.
The “safe” sectors we’re referring to are consumer staples, utilities, real estate, and health care. These market areas tend to include more mature companies known for returning cash to shareholders rather than through rapid capital appreciation of their stock. 💰