"Some sectors are booming while others, which are very interest rate-sensitive and sensitive to a high dollar, are really doing it tough, " she says.
Interest rates rose on the news and the best investors at Marketocracy (the m100) responded accordingly by jettisoning interest-rate-sensitive shares out of their portfolios.
The prime beneficiaries will be rate-sensitive companies like banks and property developers, exporters that can use savings from lower overheads to price their products competitively, and labor-intensive companies.
MUMBAI--Indian shares closed higher Thursday after recovering from their early morning losses, as investors made heavy purchases in rate-sensitive bank stocks on expectations of a cut in interest rates, dealers said.
Hardest-hit would be interest-rate sensitive stocks of consumer-goods, financing and auto companies.
The move up in yields will be substantial enough over the next few years that all interest-rate sensitive securities will be affected (utilities, preferred stock, etc).
Renewed exchange-rate turbulence could reopen a sensitive question: how should exchange rates be aligned in the run-up to eventual union?
Take the ten-year Treasury: the ten-year Treasury at a 4% yield is less risky, less sensitive to interest-rate changes than a ten-year Treasury at 2%.
Corporate-bond investors want assets that are least sensitive to rate rises, and shorter-dated high-yield bonds are the sweet spot, he said.
Sarah Smith of the University of Bristol and Kimberley Scharf of Warwick University recently carried out a series of experiments for the Treasury to gauge how sensitive higher-rate taxpayers are to changes in tax incentives.
Fidelity National is certainly sensitive to activity in the residential mortgage market, and as rates on mortgages have come back down from April through mid-May, interest rate sensitive stocks such as the home builders, mortgage lenders and REITs have all rallied.
Bank stocks, which are sensitive to interest-rate cycles, have bee among the biggest movers today.
Shares in financial companies, which are particularly sensitive to interest-rate moves, have been hit hard.
And historically it has been less sensitive to interest-rate moves, so in that sense it is not quite like a normal bond.
The yields on such instruments were fairly low, making investors very sensitive to any exchange-rate changes.
ECONOMIST: The link between exchange rates and asset markets
Their hope, of course, is that they can attract price-sensitive, low-maintenance users disgusted with the rate increases from the national players.
Such a swift about-turn would have been more difficult if interest-rate decisions had remained in the hands of a politician, sensitive to the opinion polls.
Thus although the two studies agree that interest-rate increases hurt some economies more than others, they disagree about which economies are most sensitive.
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