Avoid low-growth stocks in case of a rate hike, strategist says

Getty Images A trader works on the floor of the New York Stock Exchange.

Getty Images
A trader works on the floor of the New York Stock Exchange.

With President-elect Donald Trump setting a new direction for the economy, an interest rate hike in December could be harmful to low-growth businesses, strategist Steven Rees said Monday.

Rees, global head of equity strategy at JPMorgan Private Bank, said Trump’s plan could be a major hurdle to bond proxies, or companies in industries like telecommunications and utilities, as well as parts of the consumer staples sector.

“The companies that don’t really grow that pay a high yield, those are the companies we want to avoid here,” Rees told CNBC’s “Squawk Box.”

Still, considering Trump’s promises for significant tax reform, repatriation of capital and rebuilding infrastructure nationwide, Rees said there may be good opportunities for upside regardless of how quickly rates rise.

“The market is definitely focusing on the pro-growth, positive parts of the plan,” said Rees.



About Chris Salamone

About me ( Chris Salamone ) Attorney http://chrissalamone.com http://www.chrissalamone.biz https://vimeo.com/120517175 https://vimeo.com/user37757029 https://about.me/chrissalamone https://www.linkedin.com/in/chris-salamone-2a329b7 1515 N Federal Highway, Suite 300. Boca Raton, FL 33432 561-703-2011
This entry was posted in Business, Entrepreneurship, Leadership and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s