This year has been challenging for investors, as persistent inflation has been the big story. With this uncertainty, the S&P 500 index got off to its worst start in 52 years.
The Federal Reserve is on a mission to bring down inflation, and one way it does so is by raising interest rates. While this could spell doom for growth stocks, other stocks stand ready to benefit.
One sector that is sensitive to changes in interest rates is the banking sector. If we are entering a period of persistent inflation and high interest rates, you’ll be happy you own Bank of America (BAC -0.98%), U.S. Bancorp (USB -1.32%), and Silvergate Capital (SI -0.55%).
