Three Industries That Will Suffer From A Fed Rate Hike And Which ETF's Avoid

Matt Thalman - INO.com Contributor - ETFs


In recent weeks, the likelihood of a Federal Reserve interest rate hike has been increasing. I recently pointed out a few reason on why I believe the Fed will increase rates at the upcoming December meeting, which you can read here. I also have pointed out a few industries that would benefit from a rate hike and which corresponding ETF's that could benefit from such a move by the Fed.

So, today let's take a look at a few industries that will likely suffer from an interest rate increase and which ETF's you may want to avoid if the Fed makes a move. Continue reading "Three Industries That Will Suffer From A Fed Rate Hike And Which ETF's Avoid"

Why You Should Stay Away From REIT ETF's For Just A Little Longer

Matt Thalman - INO.com Contributor - ETFs


Last week the Federal Reserve once again announced they would not be raising interest rates. To many on Wall Street this was good news; cheap money would continue to be available, thus making it more affordable to borrow money to grow business's and spur economic activity.

But there is a downside to continued low interest rates which comes in the form of uncertainty about when rates will increase and how those increases will affect economic activity and mainly businesses that are directly affected by interest rates. When we look at who is most affected by rising rates, the finance sector is of course first to come to mind; banks and other lenders, but also the real-estate industry.

Whether it be individuals or businesses buying and selling homes or property rising interest means the overall cost of buying and owning that property increases, because of the higher interest rate the borrow will have to pay. Continue reading "Why You Should Stay Away From REIT ETF's For Just A Little Longer"