JPMorgan: Rate Hike Could Help Stocks

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Mark Melin
Published on
Updated on

Could a rate hike help stocks? A look at the 2013 “taper tantrum” might reveal the answer. Bonds have had traditionally been the “safe” investment in a portfolio, expected to deliver lessor returns than stocks but also to provide critical balance to a portfolio, particularly during crisis. But for the second year in a row, it is bond funds that have been outperforming stocks, a recent JPMorgan report notes. This performance leadership could change with an interest rate hike forthcoming – and stocks could benefit from a rise in interest rates, the October 21 “Flows and Liquidity” report concludes. Will…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.