While interest rates are currently at historic lows, experts predict an inevitable upswing to occur sometime later this year. And while the exact timetable is subject to debate, one thing is certain: For more on this topic, see How To Protect Yourself From Rising Interest Rates.

But a rising-rate environment also offers tantalizing opportunities within the equity space. A good starting point it examining the right sectors — ones that tend to benefit from rising rates.

Boasting margins that actually expand as rates climb, financial entities like banks, insurance companies, brokerage firms and money managers tend to be good bets. Rising rates tend to point to a strengthening economy. And that health usually means that borrowers have an easier time making loan payments and banks have fewer non-performing assets.

Buy these 5 stocks to profit as interest rates rise

It also means that banks can earn more from the spread between what they pay savers for savings accounts and certificates of deposit and what they can earn from highly-rated debt — Treasuries, for example. Bank names that would fit nicely into any portfolio as rates rise include Bank of America Corp. BACwhich has a substantial presence throughout the U.

JPMwith its robust operations in the U. GSwith widespread investment banking and wealth management services; and Citigroup Inc. Cwhich boasts more than million customer accounts and does business in more than countries. All banks should benefit from falling charge-offs, better credit ratios and lower loan loss reserves.

ETFCCharles Schwab Corp. SCHWand TD Ameritrade Holding Corp. AMTDall hold promise during times of escalating rates for similar reasons.

A healthy economy sees more investment activity. Insurance stocks, especially, tend to flourish as rates rise. In fact, the relationship between interest rates and insurance companies is linear and straightforward, meaning the higher the rate, the greater the growth.

These same insurance providers — companies such as The Allstate Corp. ALLAmTrust Financial ServicesInc. AFSIand The Travelers Companies, Inc. Insurers, which have steady cash flows, are compelled to hold lots of safe debt to back the insurance policies they write. The economic health dividend also applies to insurers; improving consumer sentiment means more car purchasing and improving home sales, which means more policy-writing.

Improving employment, coupled with a healthier housing market, makes consumers morel likely to splurge on purchases outside of the realm of consumer staples food, beverages and hygiene goods. Manufacturers and calculate profit options trading of kitchen appliances, cars, clothes, hotels, restaurants, movies and more benefit from the economic health dividend.

Companies to keep an eye on include appliance maker Whirlpool Corp.

WHRretailers Kohl's Corp. KSSCostco Wholesale Corp. COST and Home Depot, Inc.

Five Upcoming IPOs That Should Be On Every Investor's Radar - Money Morning

HDstocks to buy when interest rates rise travel facilitators stocks to buy when interest rates rise The Priceline Group Inc. Finally, the industrials sector also benefits from the economic health dividend indicted by rising rates.

Companies like Ingersoll-Rand PLC IR and manufacturers of heating, ventilation, and air conditioning HVAC systems, tend to outperformas well as companies like PACCAR Inc. PCAR— a maker of heavy-duty trucks and truck parts.

Such companies are among the first to benefit from any increase in housing starts. The Bottom Line You've adjusted your fixed income portfolio to account for rising rates. Now is the time to adjust your equity investments to favor companies that benefit from the economic health dividend indicated by rising rates.

An excellent place to start is the financials sector.

2 Stocks to Buy, 2 Stocks to Avoid if Interest Rates Rise | InvestorPlace

From there — as consumer confidence picks up and housing follows suit — consider durable-goods manufacturers, retailers, travel-related stocks and the industrials binary options albania. Dictionary Term Of The Day.

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Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. These Sectors Benefit From Rising Interest Rates BAC, GS By Andrew Bloomenthal Share.

Financials First Boasting margins that actually expand as rates climb, financial entities like banks, insurance companies, brokerage firms and money managers tend to be good bets. Surging interest rates demand careful attention when crafting an investment portfolio.

Some sectors benefit more than others under these circumstances. When the Fed will raises rates is still the unknown, but if it happens investors can benefit. Financials, consumer and growth stocks should do well. Interest rates can have a complicated ripple effect through financial markets. Here's what you need to know. Major banks have begun counting their profits as their interest income could enjoy significant gains. It is inevitable that interest rates will go up, but what should investors do to prepare themselves?

The Federal Reserve recently raised benchmark interest rates. With much attention on the Fed's policy, here's what happens when the Fed hikes rates. Rising interest rates have the potential to impact your retirement portfolio. Learn what mutual funds will perform best if interest rates rise. Interest rates can rise due to inflation or to an improving economy.

Discover 10 possible ways that individual investors and businesses can potentially profit from an environment of rising interest rates. Many factors go into how banks set interest rates for loans. Use this information to negotiate the best possible rate when you're borrowing. Discover the impact of interest rates on the profitability of the banking sector. When rates rise, profits increase for the Read about some of the most important macroeconomic indicators that investors in the financial services sector should watch Learn about the relationship between interest rates and insurance company profitability, and how interest rates can affect Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central Learn about some of the main factors that impact share prices in the insurance sector.

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