Interest Rate - Sector

[cpatte7372]

Hello,

Does anyone know what sector is likely to benefit from an increase in interest rate?

Thanks

Carlton

[cpatte7372]

Statement Explanation

Hello,

An excerpt of the following statement was taken from briefing.com on the rating of the Health Care industry:

"Advertising spending is on the rise as companies who mount larger marketing campaigns achieve the lion"s share of the market for new drugs. Pipelines remain the key driver of stock appreciation."

Would anyone happen to know what they are referring to when they mention "Pipelines"?

Thanks

Carlton

[DuaneG]

Hi Carlton,

More often than not, when a company refers to their "pipeline", they are speaking about the new products, services or enhancements that are scheduled to be released for public dissemination. It is sort of tough to determine the depth of what the article is referring to in this case, but usually it refers to the future product offerings of the company.

[DuaneG]

Hi Carlton,

Keep an eye on the Banking sector. Interest rate cuts and increases have a ripple effect through most sectors of the market, but the Banking sector is somewhat sensitive to change with the interest rate. One important thing to keep in mind is that if there is a specific expectation of what the Fed plans to do, (and there always is). This expectation could be easily priced into the sector ahead of time leaving the volatility high and dry when the announcement comes through the wire.

[cpatte7372]

Duane,

Thanks for the insight mate.

Cheers

Carlton