[US Stock Bellwethers] Fed Rate Hike Decision: What sectors provide potential market opportunities？
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The third issue of US Stock Bellwethers is online now.![]()
In March, the Fed's interest rate hike has almost become a market consensus. From historical experience, US stocks usually show some volatility before and after the Fed raises interest rates. But a financial database called Datastream shows that banks and industrialshistorically have beenthe best performing sectors in the three months after the Fed's first rate hike(Click here for more detail>>).
Meanwhile, since the beginning of this year, US natural gas futures, international oil prices, and London aluminum futures prices have increased due to factors such as the Russia-Ukraine conflict. According to the cyclical rule of "the investment clock," the energy sector is currently in an overheating phase, and high energy pricesmaycontinue for a while(Click here for more detail>>).
The third issue of the US Stock Bellwethers is focused on 6 of the 11 highest performing sectors of the S&P index and 6 stocks within those sectors based on market value. The 6 sectors with the best performance fromFebruary 2021toFebruary 2022areS&P Energy Sector Index, S&P Oil & Gas Exploration & Production Select Sector Index, S&P Metals & Mining Select Sector Index, S&P Financial Select Sector Index, S&P Regional Banks Select Sector Index, S&P Bank Select Sector Index. Can these sectors still provide market opportunities?
Listed USoil companywith the highestmarket capitalization (Source: Wikipedia>>)
Investment Highlights:
The stock price is buoyed by favorable factorssuch asmitigating the pandemicand rising oil prices. The company has repaid some of its debt, returning debt levels to pre-pandemiclevels, and willbebuyingback aboutUS$10 billioninstock. (Source: CNBC>>)
Risk Disclosure:
If oil prices soften and demand declines, ExxonMobil's earnings and free cash flow may face a significant revision from expectations.
If oil prices soften and demand declines, ExxonMobil's earnings and free cash flow may face a significant revision from expectations.
One of the world's largest independent oil companies (Source: Yahoo finance>>)
Investment Highlights:
Exploration of new oil fields in Suriname and the recent rise in oil price lifting by the European situation support the stock prices. (Source: Seeking Alpha>>)
Risk Disclosure:
Market volatility in the short term due to the Russia-Ukraine conflict,and risk of central banks tightening monetary policy in response to inflation.
World's largest copper and gold producer (Source: Wikipedia >>)
Investment Highlights:
Uncertainty over the copper supply outlook and strong demand following an improvement in thepandemichave pushed copper prices higher. Copper prices are poised to maintaingrowthin 2022 due to copper's central role in the energy transition. (Source: REUTERS>>)
Risk Disclosure:
The potential threat from political uncertainty inmines location,Chile and Peru.
Investment holding companyledby Warren Buffett (Source: Wikipedia >>)
Investment Highlights:
Shares have risen 28.92%from January 1, 2021 to December 31, 2021, more than double the S&P 500 (up 12.42%)of the same period, with an average annual return of 20% since 1964. (Source:yahoo finance>>)
Risk Disclosure:
U.S. government regulatory challenges toBerkshire Hathaway, Warren Buffett'sretirement plan,and his choice of successor.
US bank that has been profitable every quarter since 1976 (Source: Fortune 500>>)
Investment Highlights:
M&T Bank shares were up 31.6% overSeptember 2021 to February 2022, compared to 4.9% for the financial sectorof the same period. Also, it announced the resumption of its US$800 million share buyback program in February. (Source:yahoo finance>>)
Risk Disclosure:
Its merger with PBCT was announced to be postponed for not yet getting the approval of the Federal Reserve.
Financial services group operating in North America, Caribbean (Source: Wikipedia >>)
Investment Highlights:
Its parent company recentlymadea plan to raise its dividend and will buy back up toUS$500 million in stock during the year. Thisshowsthe company's growing financial performance and capital position. (Source: MarketWatch>>)
Risk Disclosure:
BPOPhada 92.1% debt-to-assets ratio for the last 12 months and is subject to leverage risk.
Selection Criteria:
1. 6 sectors with the largest gains in the last year according to the S&P official industry classification (as of February 22, 2022).
2. Oneindividualstock with the largest market capitalization in the selected6sectors (as of February 22, 2022).
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Disclaimer
The foregoing content does not represent any position of Futu and does not constitute any investment advice in relation to Futu. Before making any investment decisions, investors should consider the risk factors associated with their investment products according to their personal circumstances and seek appropriate professional advice when necessary. Futu shall make every effort to improve but does not guarantee the accuracy, reliability, and originality of the above content and Futu will not make any warranties and promises. The above data are for reference only. Past performance does not equate to future performance and does not constitute investment advice.
Risk Warning
The stock market is risky and investors must be cautious before entering it. Investing involves risk and the potential to lose principal.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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