Our Top Five Stocks for Rising Interest Rates

Sam Barker

Sam Barker
Investing
April 26, 2024

With interest rates rising for the first time in over four years, many individual investors are heading for the hills.

After all conventional wisdom says that rising interest rates lead to lower valuations and stock prices, and mediocre earnings.

People are scared that the market will continue to suffer, because historically, when rates rise…it does.

“Don’t fight the Fed…”

But in reality…it doesn’t have to be that way. Yes, stocks often do suffer when interest rates rise.

In some sectors.

The trick is finding high quality, exciting, companies in those industries.

Companies that thrive when rates rise.

And when we learn to make the market work for us, opportunities come out of the woodwork. After all, it is a stock pickers market out there.

Because while the market has been volatile and uncertain, targeting particular stocks that thrive with rising interest rates could give you a foolproof way to capture returns and not worry about the market.

In fact, one of the worst things an investor could do would be to fully abandon the market on news of interest rate hikes. So often, investors panic at the sound of higher interest rates, when, in reality, many of the savviest investors make these hikes work for them.

How?

By pinpointing a select few stocks that thrive exactly in markets like this. That’s right, while tech may stumble and blue-chip stocks face an uphill battle, these certain stocks look to take advantage of these rate hikes and pass the potential returns on to the shareholder.

Well that sounds easy enough, right? But here’s the catch: how do you know what stocks to target…and what stocks to leave behind?

And another issue, the sector and industry that thrives during these rare times is often overlooked and frankly…boring.

I mean, who really takes the time to scour the investing history of financial institutions?

That’s where The Motley Fool comes in.

Now, perhaps you’ve heard of us.

After all, we’ve been around for over 25 years, helping the world become smarter, happier, and richer, with some of the best investing advice around. We’ve minted millionaires with our long-term, no-nonsense approach, and uncovered some of the best stock recommendations ever.

I say that because for all the talk about the current market conditions, our team has produced these kinds of winners:

  • Recommended on September 9, 2016, Amazon is up 22,587%
  • Recommended on December 17, 2004, Netflix is up 30,359%
  • Recommended on December 18, 2009, Nvidia is up 21,322%
  • Recommended on June 15, 2016, Shopify is up 2,083%
  • Recommended on November 16, 2012, Tesla is up 7,917%

And keep in mind, these returns include the good times…and the bad.

While these are some of the great stocks The Motley Fool has uncovered for members fortunate enough to follow along, they only represent a fraction of the winners!

What’s more, these types of returns can’t happen unless you stay focused on the long term... so while we’ve discussed how rising interest rates will impact you in the short term…you should not sacrifice your long-term ambitions.

So let me give you something to focus on: achieving both with The Motley Fool.

That’s because we have recently put the finishing touches on a report that identifies five stocks we think are perfect for a time right now. A time when interest rates are on the rise and volatility and uncertainty are abound.

And with this report, you’re getting the names, symbols, and all of the details you could ask for on these incredible companies. And best of all, this report comes with access to our flagship recommendation service, Motley Fool Stock Advisor.

Stock Advisor not only provides you with two new recommendations every month, but you get continuing access and coverage on a daily basis, so you’re never left in the dark on what to do.

And with Motley Fool Live, a daily video service exclusively for members, you’re always up to date on everything market related.

With Stock Advisor, you join the ranks of some of the savviest and forward-thinking investors on the planet. Each month, nearly 1 million investors tune in to discover which stocks we believe investors should be buying shares of today.

But the incredible (and often profitable) investing strategy outlines in Stock Advisor isn’t for everyone.

And even though we are completely convinced you’ll be impressed by the exclusive research we've put together on this report and our continuing coverage in Stock Advisor

I’ll make sure your membership is backed by a 30-day 100% membership-fee-back guarantee. This allows you to get your money back if you aren’t impressed or ultimately decide Stock Advisor isn't right for you! 

This is a chance to get in early on what could prove to be a very special opportunity, especially as rates could continue to rise.

Think about how many investing opportunities you've missed out on even though you knew they were going to be big.

Don't let that happen again. This is a chance to get in early.

I urge you to act today and decide for yourself if you want to take advantage of this opportunity. Simply enter your email address below to access our secure sign-up page.

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Returns are updated during market hours. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sam Barker has positions in Netflix and Tesla. The Motley Fool has positions in Amazon, Netflix, Nvidia, Salesforce, Inc., Shopify, and Tesla. The Motley Fool has a disclosure policy.

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Past performance is not a predictor of future results. Individual investment results may vary. All investing involves risk of loss.

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