XLF: The Next Rate-Sensitive Setup The S&P 500 once again flirts with all-time highs, proving that current headwinds can do little to sway bullish sentiment. The threat of rising rates continues on as one such headwinds, creating interesting trade opportunities along the way. Last week, we highlighted an opportunity in the utilities sector (XLU) if […]
Rate-Sensitive Sectors
Surging Yields Create Risk — And Opportunity
With 10-year treasury yields now at two-decade highs, the topic of rates has dominated markets. Rising rates adds meaningful stress to the economy at large — creating both risk and opportunity for traders. The market’s most rate-sensitive corners have taken the brunt of the damage. Small caps (IWM), utilities (XLU), homebuilders (ITB), and industrials (XLI) […]