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- 1 The ups and downs in the economy due to growth or inaction directly affect the interest rates leading them to rise or fall.
- 2 The rise in interest rates signifies an improving economy along with offering investment opportunities to investors.
Alteration in the interest rates requires careful attention when designing an investment portfolio and needs identification of growth opportunities. Focusing on the stock market, examining the industries offering benefits from higher interest rates in the economy also benefits the investors. Some of the US stocks to take a look at when interest rates are high are presented below.
Bank of America (BAC)
Bank of America, the world’s leading financial institution, is considered to be one of the best stocks to invest in for rising interest rates. The enhanced customer activities with deposits and loans upsurge the net interest margin of the bank and expect to climb high in the near future. BAC’s net interest margin is around 1.69% with a stock price of $31.98 and expected to reach $40.80 in 2025. Investing in Bank of America would offer effective benefits due to high-interest rate predictions for the future.
Zillow Group (Z)
Zillow Group is another stock on the list when it comes to rising interest rates. It is one of the leading tech real-estate marketplace companies holding around 227.65 Million shares outstanding. An increase in interest rates directly declines the property values hence creating an opportunity for the investors to take benefit of the same. The current stock price of Zillow Group is $51.54 and is predicted to touch $62.67 by the end of 2025. Investing in Zillow Group would be beneficial for investors when the interest rates are high as the decline in property price will offer growth opportunities.
CitiGroup Inc (C)
CitiGroup is another leading player in banking and financial services with more than 200 Million customers. The firm is best known for its global network and offers services in more than 160 locations worldwide. The average interest rate of the bank is 3.40% and is expected to hike in the near future which would definitely offer benefits to the investors. Also, the current stock price of CitiGroup is $47.05 and is assumed to reach $65 to $71.50 by 2025 end.
Goldman Sachs Group Inc (GS)
Another name that came into the list is GS, a leading global investment banking company established in 1869. Currently, the net interest margin of GS is around 5.08% and is expected to go upwards in the near future, offering benefits to shareholders. Investing in GS stocks would be beneficial as the current stock price is $351.96 and expected to reach $406.29.
JPMorgan Chase & Co. (JPM)
Another leading global financial service provider on the list is JPMorgan Chase & Company with approximately $2.6 Trillion in assets. The current interest rate of the bank is approximately 3.8% and expected a hike in the near future if the Federal Reserve continues to increase interest rates. Investing in JPMorgan Chase & Co. would be beneficial for investors if looking for long-term growth and profit.
Conclusion
The rise in interest rates is going to offer huge benefits to investors looking for long-term benefits. JPMorgan Chase, CitiGroup, Zillow Group, Bank of America, and Goldman Sachs Group are some good stocks to invest in for rising interest rates in the USA.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
