Source: BofA Merrill Lynch

 

Really interesting chart that shows how the reaction to rate increases are highly variable by industries.

Category: Fixed Income/Interest Rates, Investing, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “S&P 500 Rate-Sensitive Industries”

  1. BetaDist says:

    I have no idea what an “implied upside” on “relative forward P/E” (relative to what?) means.

    By the way, Mr. Ritholtz, you do realize that if we regressed “implied upside…P/E” on “Sensitivity” that would constitute a univariate regression — i.e. single variable analysis. I’m pretty sure someone said that that was for losers…

    ~~~

    ADMIN: Speak to Merrill . . .

  2. rd says:

    I didn’t see BoA Merrill Lynch shown on the chart anywhere….

  3. san_fran_sam says:

    I can understand utilities, REITs, and construction being interest rate sensitive. But I am at a loss to figure out the mechanism that makes tobacco interest rate sensitive. Unless its the case that cigarettes are so expensive that you need to take out a loan to buy them.

  4. rlerner says:

    Am I missing something, or have the listed autos as mildly benefiting from rising interest rates? How does that work? I thought auto sales were largely tied to financing.

  5. flocktard says:

    I think we’ll be in a low rate environment for some time to come. Just about everybody got this one wrong, especially absurd when you consider that’s even WITH our being half way winding down purchases since the Fed started in December.

    Unless there’s a real catalyst out there for inflation- wages, overconsumption, return of binge lending- there’s really no reason for rates to rise.