There's a 58% Chance of a Fed Rate Hike in October. These Are Stocks to Buy Anyway.
Written by Keith Speights for The Motley Fool -> UnitedHealth's comeback shouldn't be derailed by a potential rate hike. JPMorgan Chase's net investment income would increase with higher rates. Chโฆ
UnitedHealth's comeback shouldn't be derailed by a potential rate hike.
JPMorgan Chase's net investment income would increase with higher rates.
Chevron's business would almost certainly be booming in an environment where rate hikes were needed.
Many investors breathed a sigh of relief when the Federal Open Market Committee (FOMC) chose to leave rates unchanged at its latest meeting. However, the reprieve might not last long.
CME Group 's (NASDAQ: CME) FedWatch estimates the probability that the FOMC will increase rates in its next meeting in mid-September at 44.1%, based on 30-day Fed funds futures prices. FedWatch projects a 57.7% chance of a rate hike at the FOMC meeting scheduled for late October.
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Rising rates are usually bad for many stocks. That isn't the case for all of them, though. Here are stocks to buy even if a rate increase is right around the corner.
I'd put UnitedHealth Group (NYSE: UNH) high on the list of stocks to buy even if rate hikes are in store. Americans can't afford to cancel their health insurance just because the Fed increases the federal funds rate by 25 or 50 basis points.
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