It's time to start to pay attention here if you're invested in INTEREST RATE SENSITIVE investments. The unemployment rate is dropping... T Bill rates are rising... Won't be long now til the FED raises rates.
This is a Yin/Yang issue for investors.
Rising interest rates can hurt capital growth on rate sensitive investments.... but HELPS stocks such as industrials etc -- as the rising rates tend to signal an expanding economy. An expanding economy helps the stock market....
I'm never a fan of moving money to try to get out of one sector to buy another. Rather -- if you have new money - that's what you put to work in something that should benefit from better housing - better car sales - better infrastructure spending... Think Caterpillar... PACCAR... Railways... that type of thing. But I'd also remind people to look AHEAD... because the big boys on wall street are 6 months to a year ahead of you THUS the rising market we've been seeing.
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