Rising interest rates are spooking investors these days, but if history is any guide, there are plenty of stocks that are consistent winners during periods of rising bond yields. Many of these names are well-liked by Wall Street analysts today.
The major averages, especially the technology-heavy Nasdaq Composite, have been pressured by rising bond yields in 2021. The 10-year Treasury yield touched a 14-month high last week, raising concerns about valuations on growth and tech stocks.
The market has been basically stuck in place during the latest rate spike.
But history shows some stocks stand out during periods of sharp jumps in rates.
Outperformers when interest rates rise include banks and other financial stocks, like Goldman Sachs, and retailers that are linked to a recovering economy, such as Nike. Cyclical technology names, including Micron Technology, also fare well as yields increase.