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Updated over 9 years ago on .

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870
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James Park
  • Real Estate Broker
  • Johns Creek, GA
664
Votes |
870
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What asset class rises and falls in an interest rising environment?

James Park
  • Real Estate Broker
  • Johns Creek, GA
Posted

The 10 year treasury bond bottomed at 1.95% on January 1941 rose to 14.59% as of January of 1982 making it a 40 year interest rising environment. 

What asset classes rises and falls in an interest rising environment? Couple things that come to mind is that dollar will further strengthen as foreign capital will flow into the U.S. CD laddering would be a good strategy in an interest rising environment. Banks and Financial blue chips stocks should do well when rates are rising. I would think that landlords would also benefit as rents will rise as home affordability gets tougher. Gold does well when rates are fall, but not when rates rise.

What other asset classes would rise and fall in an interesting rising environment?