Hawkish Fed = Rates Rising = Financial Up

10/23/17 08:38AM EDT

Editor's Note: Below is a brief excerpt from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look. 

Hawkish Fed = Rates Rising = Financial Up - 10.23.17 EL Chart

That’s another way to look at #RatesRising. Low Beta sector exposures like Consumer Staples get pounded by higher beta Financials when rates rise at an accelerating rate.

  1. Financials (XLF) were +2.0% on the week to +14.6% YTD = Bullish TREND @Hedgeye
  2. REITS (MSCI) were down another -1.2% on the week to +1.2% YTD = Neutral TREND @Hedgeye
  3. Consumer Staples (XLP) were -1.2% on the week to only +4.2% YTD = Bearish TREND @Hedgeye


Hawkish Fed = Rates Rising = Financial Up - early look

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