Growth Or Value As Interest Rates Rise?

Growth Or Value As Interest Rates Rise? by Robert R. Johnson, PhD, CFA, CAIA
President and CEO of The American College of Financial Services

Now that the Fed has raised the target Fed funds rate for the first time in nearly a decade, pundits have switched their attention from speculating on if a rate change was going to take place to what the rate change means for the financial markets. Many analysts are speculating on which investment style and which equity sectors will be the winners in the new, higher interest rate environment. For instance, in a recent MarketWatch piece, Tim Clift contends that “growth stocks are your best bet as interest rates rise,” and that “signs favor technology...