{"id":986945,"date":"2022-06-06T14:13:11","date_gmt":"2022-06-06T18:13:11","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=986945"},"modified":"2026-03-09T18:26:39","modified_gmt":"2026-03-09T22:26:39","slug":"sectors-stocks-that-could-protect-you-amid-rising-rates","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/stock-trading\/sectors-stocks-that-could-protect-you-amid-rising-rates","title":{"rendered":"Investments that might protect you from rising interest rates"},"content":{"rendered":"

Rising interest rates can signal a dip in the stock market as more people turn to savings instead of stocks to grow their wealth and companies churn out less profit due to paying higher interest on debt. But which sectors and stocks do well when rates are on the rise? Here are the stocks you should keep an eye on during rate hikes.<\/p>

What should investors look for during rate hikes?<\/h3>

Not all sectors will perform well when interest rates are rising, so investors shouldn\u2019t expect broad equity market returns. Investing during periods of rising interest rates can be successfully done by shifting toward companies and sectors that tend to do well in the higher rates environment, such as energy, financials, real estate and consumer staples. Companies that have a large cash balance and a track record of consistent dividend payouts tend to perform well during rising interest rates. High dividend stocks in the US outperformed the S&P 500 in 7 out of the 10 rising interest rate periods that occurred since 1960, according to data from Global X Management Company.<\/p>

4 sectors that perform well during inflation<\/h3>
Sector<\/strong><\/th>Our Stock Pick<\/strong><\/th>Link to invest<\/strong><\/th><\/tr><\/thead>
Energy<\/td>Devon Energy Corporation (DVN)<\/td>Buy on Questrade<\/a><\/td><\/tr>
Financials<\/td>Upstart Holdings (NasdaqGS: UPST)<\/td>Buy on Questrade<\/a><\/td><\/tr>
Real Estate<\/td>Preferred Apartment Communities (NYSE: APTS)<\/td>Buy on Questrade<\/a><\/td><\/tr>
Consumer Staples<\/td>Tyson Foods, Inc. (NYSE: TSN)<\/td>Buy on Questrade<\/a><\/td><\/tr><\/tbody><\/table>

More stock picks from the 4 sectors<\/h3>

Energy<\/h3>

The energy sector has historically been the best performing sector leading up to a peak in inflation, according to data from Refinitiv.<\/p>

In fact, the energy sector was the best-performing sector in the S&P 500 in 2021. According to financial information and analytics company S&P Global, energy was the only sector that didn\u2019t post a loss in January 2022.<\/p>

Underproduction in the energy sector can drive up prices. When crude oil prices rise, oil stock prices tend to follow, because a portion of oil companies\u2019 earnings comes from the amount of oil that is sold.<\/p>

Check out our guides on the best oil stocks in Canada<\/a> and the United States<\/a> for more information on stocks to watch.<\/strong><\/p>

Energy stocks and ETFs to watch<\/h3>
\"Devon<\/div>

Devon Energy Corporation (DVN)<\/a><\/h4>

Devon Energy Corporation is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and natural gas liquids in the United States.<\/p>