With the Federal Reserve inching closer to raising interest rates, investors are increasingly scrutinizing sectors and industries for positive correlations and vulnerabilities to higher borrowing costs.
On the surface, consumer discretionary stocks and the corresponding exchange-traded funds would not appear to be the best rising rates plays.
Despite presumed ebullience surrounding regional banks in a rising rate environment, homebuilders equities and ETFs such as the SPDR S&P Homebuilders (ETF) (NYSE: XHB) are also seen as potential laggards after the Fed boosts rate. However, there is an alternative view here worth considering, and it holds that XHB might just have more upside ahead of it.
The Argument For XHB And Peers
Gains for homebuilders and stocks would be even more impressive if ...
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